• A Bitcoin whale opened a $450M short position on Hyperliquid with 40x leverage.
  • The whale deposited $5M in USDC to strengthen its position and avoid liquidation.

A Bitcoin whale on Hyperliquid is facing a coordinated effort to force liquidation after opening a $450 million short position with 40x leverage. The trader’s aggressive move has drawn widespread attention from the crypto community, triggering a “manhunt” led by traders aiming to counteract the position.

The trader first opened the massive short position on March 16, initially valued at over $300 million. By March 17, the position had grown to 5,167 BTC, worth around $429 million. The whale closed two positions through Time-Weighted Average Price (TWAP) for a total of 208 BTC, valued at over $18 million.

At 4:30 AM UTC, the whale deposited $7.5 million in collateral to avoid liquidation. On-chain data shows an unrealized loss of $1.1 million in profit and loss (PNL). However, the trader’s short position remains active, with an unrealized profit of $4 million.

Coordinated Efforts to Liquidate the Whale

Crypto trader @Cbb0fe, also known as CBB, identified the whale’s short position and called for a coordinated effort to liquidate it. CBB urged traders to message them if they were willing to participate, requiring a minimum “7-figure” commitment. 

As a result, the whale was forced to deposit $5 million in USDC to maintain margin requirements. However, the effort failed as the whale reinforced its position by continuing to short BTC through TWAP orders. Hyperliquid acknowledged the viral short trade, highlighting its platform’s role in hosting high-stakes market activity. “When a whale shorts $450M+ BTC and wants a public audience, it’s only possible on Hyperliquid,” the platform stated.

The incident is not the trader’s first controversial move. Earlier this month, they opened a 50x leveraged Ethereum position worth $340 million, leading to a $4 million loss for Hyperliquid. The platform later adjusted its risk management strategies to mitigate future risks.

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