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Whale Bitcoin Short on Hyperliquid Triggers $420M Battle

Whale Bitcoin Short on Hyperliquid Triggers $420M Battle
Whale Bitcoin Short on Hyperliquid Triggers $420M Battle

Key Points

  • Whale Bitcoin Short on Hyperliquid Triggers $420M Battle
  • Traders, led by CBB, launched a coordinated effort to liquidate the position.
  • Rumors suggest Justin Sun and even Eric Trump may be involved.
  • Analysts believe market makers manipulated the trade to trap the whale.

A high-stakes battle is unfolding in the crypto market. A whale trader on Hyperliquid, a decentralized exchange, placed a $423 million Bitcoin short using 40x leverage. This move triggered a dramatic response from traders and influencers, who are now working together to push BTCโ€™s price higher and force a liquidation.

Crypto trader CBB took to X (formerly Twitter), calling on high-net-worth investors to join forces. He claimed that “eight figures” had already been committed to the effort. Interestingly, he also hinted that Tronโ€™s founder, Justin Sun, was involvedโ€”though Sun has not confirmed this. In a surprising twist, CBB even invited Eric Trump to participate.

Hyperliquid has already faced scrutiny over suspicious trading activities, with many questioning whether its structure enables money laundering. Some experts believe this whaleโ€™s aggressive trading pattern fits a broader trend of unregulated transactions on the platform. Hyperliquid money laundering fears rise after suspicious trades.

The Whale Walletโ€™s High-Leverage Bitcoin Short Trade. Source: Hyperliquid.

The Whale Walletโ€™s High-Leverage Bitcoin Short Trade. Source: Hyperliquid – Techtoken

The whaleโ€™s short position is still profitable, with BTC trading at $83,460โ€”just 3% away from liquidation. However, with increasing volatility, a sudden price move could decide the whaleโ€™s fate.

A Market-Wide Battle Unfolds

The whale, identified by the wallet 0xf3F496C9486BE5924a93D67e98298733Bb47057c, has a history of high-leverage trades. Some analysts even speculate potential links to North Korean hacking groups.

Many traders suspect the whale attempted a dual-exchange strategyโ€”shorting Bitcoin on Hyperliquid while simultaneously going long on a centralized exchange (CEX). The plan? Force a short squeeze on Hyperliquid, causing BTCโ€™s price to surge and profiting from the long position.

However, market makers caught on. According to X user CryptoVikings, they manipulated the price downward first to liquidate the whaleโ€™s CEX longs, then pumped BTCโ€™s price to squeeze the Hyperliquid short. If true, this move left the whale trapped on both sides.

The Ripple Effect on the Crypto Market

This high-stakes whale war is not happening in isolation. Bitcoinโ€™s price movement often influences the broader market, and Solana (SOL) traders are closely watching this situation. SOL, which has been on a bullish trajectory, needs a 40% surge to break key resistance levels and maintain its momentum. Solana price rally needs 40% surge to break key resistance.

At the same time, XRP has been making headlines after surpassing Ethereum’s fully diluted valuation (FDV) and gaining strong institutional support. This recent surge has sparked discussions about XRPโ€™s liquidity in the U.S. market, with a new proposal potentially unlocking $1.5 trillion in funds. XRP unlock US liquidity proposal could free $1.5 trillion & XRP surpasses Ethereum FDV.

Meanwhile, crypto scams and phishing attacks have been on the rise. Scammers are increasingly targeting users of major platforms like Coinbase and Gemini, using fraudulent emails to steal funds. The growing number of scams underscores the importance of security as more traders flock to decentralized exchanges like Hyperliquid. Crypto scam emails target Coinbase & Gemini users.

The Future of Hyperliquid and Public Trading

Despite the controversy, Hyperliquid has embraced the event, highlighting how public trading transparency is the future of decentralization.

โ€œHyperliquid has redefined trading. When a whale shorts $450M+ BTC and wants a public audience, itโ€™s only possible on Hyperliquidโ€ฆ Anyone can photoshop a PNL screenshot, but no one can question a Hyperliquid positionโ€”just like no one can question a Bitcoin balance. The decentralized future is here,โ€ the platform stated.

With the market watching closely, the question remainsโ€”will the whale survive this market ambush, or will coordinated efforts push BTC past the liquidation point?

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Abhijeet
Abhijeet is a Web3 and crypto writer who brings blockchain concepts to life with simple, engaging, and SEO-driven content. From DeFi and NFTs to emerging blockchain trends, he crafts stories that resonate with readers and build authority for Web3 brands.

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