Bitcoin has demonstrated its resilience by rebounding to its 200-day moving average since last Tuesday, when it dipped to $76,606, even though it still sits below this crucial technical level. In this unpredictable market, a prominent whale has adopted a contrarian strategy by initiating a highly leveraged short on Bitcoin perpetual futures through Hyperliquid.
Significant Bitcoin Whale Takes a Short Position
Per insights from Hyperliquid and blockchain analyst Lookonchain, the whale’s short position exceeds $445 million and employs 40x leverage. The liquidation price for this position is set at $85,940, and despite the significant risks, the trader is currently reporting an unrealized gain of $4.4 million.
The pseudonymous trader CBB (@Cbb0fe) rallied a group of market participants with the aim of targeting this position. Lookonchain noted a coordinated attempt to pressure the whale: “This whale still managed to profit despite being pursued by a team! Just 11 hours ago, @Cbb0fe organized a group to hunt this whale who shorted BTC with 40x leverage. Within an hour, the team was driving BTC above $84,690 in a short amount of time,” Lookonchain stated on X.
Significantly, the whale was compelled to deposit $5 million USDC to bolster margin and avoid liquidation. “However, the attempt eventually fell short. The whale continued to ramp up positions to short BTC. Currently, the whale holds 5,406 BTC ($449M), with an unrealized profit of $4.4M,” added the blockchain analytics service on X.
In a flurry of tweets, CBB further heightened the situation, declaring: “The hunt has begun,” and urged others to join, saying, “If you are willing to take on this individual with size, drop a DM; we’re forming a team right now and already have significant backing.” He later remarked: “We may have lost a battle, but we haven’t lost the war. We’re locked in,” adding humorously, “Holy fuck please Eric Trump send help from the divine father to liquidate this mfer.”
Hyperliquid has emerged at the forefront of this unfolding event, underscoring its role in providing unmatched transparency in high-leverage trading. In a statement shared on X, Hyperliquid asserted: “Hyperliquid has transformed trading. When a whale shorts over $450M in BTC and desires a public audience, it’s only achievable on Hyperliquid. […] Anyone can manipulate a PNL screenshot, but no one can dispute a Hyperliquid position, just as nobody can question a Bitcoin balance. The decentralized future has arrived.”
Hyperliquid recently gained attention after an incident involving a notable whale who executed a “liquidation arbitrage.” This event led to the extraction of fluctuating profits, resulting in a margin shortage that caused forced liquidations, shifting risk to the decentralized exchange’s HLP vault.
As of this writing, BTC is priced at $83,455.
