A whale wallet on the decentralized exchange (DEX) Hyperliquid executed a highly leveraged long position at a tight liquidation price, surprising the community. This trade drew the attention of another whale group, triggering an unprecedented public "whale hunt" in the market.
Hyperliquid also believes that such easily traceable trading activity represents the future of decentralization.
$420 Million High-Leverage Position...Selling Pressure on the Market
A whale opened a 40x short position on Bit with the wallet address 0xf3F496C9486BE5924a93D67e98298733Bb47057c. The total amount exceeds $423 million. The liquidation price is $86,198 at the time of writing. The current short position is reporting over $2 million in profits.
This whale has recently executed large-scale leveraged trades, raising suspicions among experts about potential links to North Korean hackers.
The massive position size and tight liquidation price have caught the attention of X (formerly Twitter) user CBB. He called for a group effort to hunt the whale by pushing up the BTC price. In his X post, he claimed that "8 figures" (tens of millions of dollars) have been committed to the plan.
"If you're interested in hunting this person on a large scale, send me a DM. I'm currently assembling a team and have already secured a good size," CBB said.
CBB also revealed that TRON founder Justin Sun is part of the group, though Sun has not officially confirmed this. Additionally, CBB invited Eric Trump, the son of former President Donald Trump.
The story is still unfolding, and it's unclear how far CBB's whale hunting efforts will go. For now, the position is still profitable, and Bit is trading at $83,460, leaving only 3% until liquidation.
According to a Kaiko report from early March, the 1% market depth for Bit is $300 million. This means that at least $300 million in capital may be required to move the BTC price by 1%.
Many X users are watching this event unfold like a high-risk drama. CryptoVikings believes that the Hyperliquid whale is simultaneously shorting on the DEX while going long on centralized exchanges (CEXs).
"The HL whale's strategy was simple. He publicly took a massive short position with high leverage on Hyperliquid to draw attention. At the same time, he went long on CEXs. He expected a Bit short squeeze and a nice rally of over $1,000, with market makers and institutions driving the liquidation. He would profit from the long side. However, the market makers and exchanges understood the strategy. They first drove the price down to liquidate his CEX position, then pushed the price much higher to hunt him from both sides," CryptoVikings predicted.
Hyperliquid has embraced this incident, praising the transparency of open trading as the future of decentralization.
"Hyperliquid has redefined trading. When a whale wants to short over $450 million of Bit and seek a public audience, it can only happen on Hyperliquid... Anyone can Photoshop PNL screenshots. But Hyperliquid positions are unquestionable, like Bit balances. The decentralized future is here," Hyperliquid said.
The market is closely watching how this whale war will unfold.
