Abraxas Capital Bets Against Brent Oil on Hyperliquid: $135M Short Position Signals Major Market Shift

Abraxas Capital has taken a massive $135M short position against Brent crude oil on Hyperliquid, betting against traditional energy markets despite escalating geopolitical tensions. The $2B fund is simultaneously shorting gold while maintaining bullish positions on Bitcoin, SOL, and silver, signaling a strategic pivot toward digital assets as geopolitical hedges. Through Trade[.]XYZ wallets, Abraxas expanded perpetual futures positions on both Brent and WTI crude, representing one of the most significant institutional crypto-native bets against conventional energy markets.

Why is Abraxas Capital shorting oil? 

Abraxas Capital can afford to pay the relatively high fees to hold the crude oil positions. The liquidation price range is between $146 and $141 per barrel, while Brent traded around $115. WTI is still at around $102. 

Compared to crypto, even the current volatile oil market remains slower, allowing Abraxas Capital to benefit even from a small downturn. Hyperliquid is open 24/7 and can reflect the latest news on geopolitical tensions, leading to an immediate oil downturn. 

The relatively risky strategy is combined with the usual crypto activity of Abraxas. The long BTC position also suggests Abraxas Capital expects at least some market normalization. All positions may only work in the short term and not reflect a sustainable trend. 

Oil is still the leading Hyperliquid commodity market

Both Brent and WTI make up the busiest trading contracts on HIP-3. Brent open interest remains at $419M, with $370M in daily volume. 

The WTI CL contract retains $262M in open interest, with $441M in daily volume. Both oil futures are below their peak trading activity, where WTI peaked at $1.5B. 

Silver and gold are no longer used for assets responsive to market uncertainty. Oil is the more rapidly reacting commodity, allowing crypto traders to benefit from directional bets. The platform is still a key venue on weekends and off-market hours, where new developments of the war in Iran can shift price direction.

In addition to whales like Abraxas, Hyperliquid is attracting new retail wallets. As of March 25, a record 7,794 new users entered the market, partially driven by the attractive offers of HIP-3. 

Trade[.]XYZ remains the leading third-party market on HIP-3, with a peak open interest of $1.76B. Trade[.]XYZ reached a market share of 85.6%, leaving behind other exchanges.

The inflow of new users supported HYPE, which recovered to $38.83 after the most recent dip. However, Abraxas Capital did not show confidence in the platform’s native token; instead, it shorted the asset in a position with a notional value of $3.93M. 

The smartest crypto minds already read our newsletter. Want in? Join them.