HyperLiquid Whale Faces $3.32 Million Loss as Ethereum Surges
- Whale deposits $25M on HyperLiquid to short ETH, SOL, and BTC with 5X leverage.
- Whales unrealized losses exceed $3.32M, including $1.2M from Ethereum short positions.
- Hyperliquids trading volume hits $186.13M, marking a 26% increase in liquidity.
A whale on HyperLiquid, a decentralized perpetual exchange, has taken an audacious position by depositing $25 million to short Ethereum (ETH), Solana (SOL), and Bitcoin (BTC) with 5X leverage. Data from Lookonchain reveals that the whales position has already incurred losses exceeding $700,000.
This signals strong bullish pressure on Bitcoin, Ethereum, and Solana, raising the potential for a short squeeze. Traders should carefully monitor Hyperliquids liquidation levels, as such large positions could introduce increased volatility and price reversals in these major cryptocurrencies.
With an unrealized loss of $1.5 million at the time of reporting, the whale faces substantial risk. Ethereums surge, driving its price higher, has contributed significantly to these losses, with ETH short positions accounting for $1.2 million in unrealized losses.
According to Whale Alert, the whale has recently added $12 million to its short positions, raising the total to $29 million. The total value of all short positions now exceeds $68.9 million, but the whale is currently grappling with a floating loss of $3.32 million.
Whales Short Positions Face Liquidation Risk
The recent 35% surge in Ethereums price over just one week has significantly impacted the whales short position. This growth has occurred despite broader market movements, leading to a diminishing Bitcoin dominance.
Currently, Bitcoins dominance is approaching 60% after reaching multi-year highs earlier this month. However, Ethereums performance continues to outperform BTC and other altcoins this year. The whales short positions are subject to liquidation if Ethereums price spikes past $4,489.
Since the whales account is cross-market influenced, a surge in any of the shorted assets could trigger liquidation across the entire account, intensifying the pressure on this position. Despite these risks, the whale continues to earn funding fees from shorts, as most traders are currently positioned long on Ethereum.
Hyperliquid Gaining Momentum Amid Market Fluctuations
As a whale increases its short position on Ethereum, Solana, and Bitcoin, Hyperliquid continues to gain momentum in the crypto space. Despite a 5.52% decrease in HYPEs value over the past 24 hours, the tokens market cap has reached $8.14 billion, indicating the platforms growing significance in decentralized trading.
Hyperliquids trading volume has surged to $186.13 million, reflecting a 26.02% increase, highlighting enhanced liquidity and rising investor interest. The platforms recent achievement of a record-setting $5.6 billion in open interest demonstrates its strong position in the decentralized derivatives market.
Read more: https://www.tronweekly.com/hyperliquid-whale-faces-3-32-million-loss-as/
Text source: TronWeekly
