Crypto Whale Bleeds $3.3M as ETH Rally Obliterates HyperLiquid Position

Another ’smart money’ trader learns the hard way—even whales get harpooned when markets move against them. This HyperLiquid player just joined the $3 million loss club.

Ethereum’s surge to new 2025 highs turned lethal for one over-leveraged position. The trade collapsed faster than a DeFi protocol facing its first stress test.

Lesson for the rest of us? In crypto, you’re either the shark or the chum. Today’s ’whale’ is tomorrow’s sushi platter.

• Whale deposits $25M on HyperLiquid to short ETH, SOL, and BTC with 5X leverage.
  
• Whale’s unrealized losses exceed $3.32M, including $1.2M from Ethereum short positions.
  
• Hyperliquid’s 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 whale’s 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 Hyperliquid’s 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. Ethereum’s 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.

A whale deposited another $12M $USDC (Total: $29M) into #HyperLiquid to increase the short position on $ETH, $SOL, and $BTC with 3x leverage.

The position value of all shorts is now over $68.9M, with a floating loss of $3.32M.

Address: 0xb83de012dba672c76a7dbbbf3e459cb59d7d6e36… https://t.co/VNAWSRCz9l pic.twitter.com/gpuw72MlaO

Whale’s Short Positions Face Liquidation Risk

The recent 35% surge in Ethereum’s price over just one week has significantly impacted the whale’s short position. This growth has occurred despite broader market movements, leading to a diminishing Bitcoin dominance. 

Currently, Bitcoin’s dominance is approaching 60% after reaching multi-year highs earlier this month. However, Ethereum’s performance continues to outperform BTC and other altcoins this year. The whale’s short positions are subject to liquidation if Ethereum’s price spikes past $4,489. 

Since the whale’s 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 HYPE’s value over the past 24 hours, the token’s market cap has reached $8.14 billion, indicating the platform’s growing significance in decentralized trading.

Hyperliquid’s trading volume has surged to $186.13 million, reflecting a 26.02% increase, highlighting enhanced liquidity and rising investor interest. The platform’s recent achievement of a record-setting $5.6 billion in open interest demonstrates its strong position in the decentralized derivatives market.

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