Whale uses 40x leverage to aggressively short $33.24 million worth of BTC, Hyperliquid short sentiment heats up

According to the latest news, on January 7th, a whale deposited 2 million USDC into Hyperliquid, then used 40x leverage to short 358.85 BTC, amounting to $33.24 million. This aggressive move highlights the rising bearish sentiment on derivatives platforms and raises concerns about high leverage risks.

The Logic Behind the Whale’s Aggressive Shorting

Behavioral Feature Analysis

The key characteristic of this trade is the high leverage ratio. A 40x leverage means controlling a $33.24 million BTC position with only $2 million in margin, making it extremely sensitive to market sentiment changes. In terms of scale, this is not a small retail trader testing waters, but a major whale making a clear bet.

Currently, BTC is around $92,457, down 1.19% in the past 24 hours but up 4.65% over the past 7 days. Against this market backdrop, the whale’s aggressive short indicates an expectation of a short-term correction.

Hyperliquid Platform’s Leverage Ecosystem

As one of the most active derivatives platforms, Hyperliquid’s convenient leverage trading has attracted many whales. According to reports, the platform’s average monthly revenue in December was about $5.5 billion, slightly down from $10 billion in early Q3/Q4, but trading activity remains high. This high activity suggests that large leverage operations are now commonplace on the platform.

Signals of Increasing Short Concentration

Comparison with Other Whales

This is not an isolated event. Previous reports indicate that short whales on Hyperliquid have already shown some concentration:

This comparison shows significant variation in leverage choices among different whales. The 40x leverage in this operation is an extremely aggressive level based on known cases, possibly reflecting strong confidence in a market correction by the short side.

Market Performance of Bearish Sentiment

It’s noteworthy that these concentrated short positions emerged during a period when BTC prices experienced a pullback from recent highs. After breaking above $93,000 on January 5, BTC saw a slight correction in the following days, providing an entry opportunity for short whales.

Hidden Risks of High Leverage

Liquidation Risk Assessment

The risk of 40x leverage is that a mere 2.5% adverse move can lead to full margin liquidation. With BTC at $92,457, if BTC rises to $94,768 (a 2.5% increase), this position faces a liquidation risk. Considering BTC’s volatility, this risk window is not very large.

In comparison, the Strategy counterparty’s 10x short currently has an unrealized loss of $3.3 million, indicating that even relatively moderate leverage is under pressure from adverse price movements.

Platform Risk Accumulation

The concentration of large leveraged positions on Hyperliquid also introduces platform-level risks. If these high-leverage positions face margin calls simultaneously, it could trigger a chain reaction within the platform. Reports indicate that competitors like Aster and Lighter have started to erode Hyperliquid’s market share since December, further increasing the platform’s profitability pressure.

Summary

The whale’s aggressive shorting reflects market expectations of a correction, but the extreme 40x leverage also exposes the risks accumulated in the derivatives market. While the current high position of BTC and rising bearish sentiment are reasonable market reactions, the concentration of high leverage operations warrants caution. Investors should monitor the liquidation risks of these large positions, as they could trigger market volatility at key price levels. The price movement of BTC in the coming days will directly impact the profitability of these short positions and influence overall derivatives market risk.