Whale $109M Short Position Gets Trapped: Aggressive Bets Amid Market Upturn

A whale that previously sold 255 BTC heavily to HyperLiquid has further increased its short position in the past 12 hours. Currently, its short positions on BTC and ETH have reached $109M, but it faces over $1.8M in floating losses. This aggressive short strategy by the whale contrasts sharply with the current market upward trend and also reflects an increasing divergence in strategies among large traders.

Whale’s Short Positioning

Position Size and Composition

This whale’s current short holdings include:

This is not the whale’s first aggressive short. According to recent news, the whale previously deposited $5.5 million USDC into HyperLiquid to increase its ETH short position, which at that time amounted to $68 million. The recent additional increase indicates growing confidence in a market decline.

Current Predicament

As of the latest data, this whale is already in floating loss, exceeding $1.8M. Considering the current BTC price around $91,330.90 and a 4.04% increase over the past 7 days, its short strategy is now facing direct market testing.

Microcosm of Market Contradictions

Divergence Among Large Traders

This whale’s aggressive short contrasts sharply with the actions of other major market participants. According to recent reports:

• A whale “0xEa6” deposited $8 million USDC on the first trading day of 2026 to establish a long position, currently with an unrealized profit of $2.8 million
• BlackRock deposited 1,134 BTC and 7,255 ETH into Coinbase, indicating a long-term bullish stance
• Another whale added 2 million USDC into Lighter to increase its LIT holdings

This strategic divergence reflects significant differences in short-term market outlooks. Shorts see downside risks, while longs continue building positions.

Risk Assessment

This whale’s position faces multiple risks:

• Leverage Risk: ETH at 15x leverage, BTC at 10x leverage, with high volatility increasing risk
• Liquidation Risk: Continued upward movement in BTC and ETH could trigger liquidation levels
• Time Risk: Ongoing floating losses erode margin, increasing forced liquidation chances
• Market Environment: Recent data shows BTC and ETH trending upward, contrary to the short bias

Future Focus

The trajectory of this whale’s position warrants close attention, as it may signal:

1. Whether the whale will continue to add or reduce positions, depending on market confidence
2. Potential chain reactions if the position gets liquidated
3. The overall balance of bullish and bearish forces in the market

Historically, this whale experienced significant losses in ZEC trading (total loss of $5.56 million). Whether its short strategy will repeat such outcomes depends on future market movements.

Summary

This whale’s $109M short position highlights the clear divergence present in the current crypto market. Amid ongoing gains in BTC and ETH, this aggressive short strategy is now in trouble, facing over $1.8M in floating losses and increased liquidation risk. Meanwhile, other large traders’ long positions create a stark contrast, indicating differing market outlooks. The key factors moving forward are whether BTC and ETH can continue rising and whether this whale will be forced to liquidate, which could become a significant short-term market variable.