- A whale expanded their short position to $69 million across ETH, BTC, and SOL using 3X leverage on HyperLiquid.
- Ethereum alone accounts for $1.2 million in unrealized losses amid a 35% price rally this week.
- The short position is at risk of liquidation if ETH price rises to $4,489, affecting the entire account due to cross-margin use.
A whale trader has significantly increased their bearish position on the decentralized perpetual exchange HyperLiquid. The wallet has now deposited a total of $29 million to back a $69 million short position on Ethereum (ETH), Bitcoin (BTC), and Solana (SOL) using 3X leverage. This follows a recent $12 million deposit, escalating the risk exposure.
The large-scale short spans the three major cryptocurrencies simultaneously, signaling a high-conviction bearish stance. The Ethereum portion alone accounts for most of the exposure and current losses. According to live data from the exchange’s dashboard, the trader has an unrealized loss of $1.5 million, with ETH contributing $1.2 million to that figure.
Ethereum’s Rally Applies Pressure to Shorts
Ethereum has seen a sharp price increase of 35 percent over the past week, substantially outpacing Bitcoin and other altcoins. This surge has challenged the whale’s short position and threatens liquidation. The ETH short will be liquidated if prices hit $4,489. The use of cross-margin puts the entire account at risk if one asset experiences a sudden spike.
Despite the drawdown, the whale is earning positive funding due to the current market sentiment favoring long positions. This means the short seller collects fees from traders taking the opposite side. However, these gains are minimal compared to the mounting floating losses.
The recent altcoin rally has trimmed Bitcoin’s market share, which is close to slipping below 60 percent. The shift reflects growing investor interest in Ethereum and other altcoins. The timing of the whale’s short strategy has coincided with this change, amplifying the risk.
