Perpetual contracts are increasing short positions on HYPE by $260 million

In a remarkable development in the markets, specialized reports have revealed an aggressive activity by a professional trader focused on short-selling strategies across the perpetual contracts markets. This activity reflects a strong bearish trend toward several major cryptocurrencies, as the trader has doubled their bets in recent hours.

Short Selling Strategy: From $3 Million to $11 Million

According to blockchain analyst Yu Jin on Odaily, the trader known by wallet address 0xD83…Fd7 is employing an advanced approach to maximize profits through short-selling. He began his bearish trades last Friday by shorting Ethereum, then used the floating profits to expand his short positions into additional coins. This tactic successfully turned an initial capital of $3 million into $11 million, demonstrating high efficiency in managing positions.

Distribution of Short Positions Across Four Coins

The trader’s short-selling strategy has expanded to include four major cryptocurrencies with a total value of $261 million. The largest portion of these positions is in Bitcoin, with a short sale of 1,640 BTC worth $150 million. The entry price was set at $92,120, with a tight liquidation level at $94,732, and floating profits of $1.98 million.

The second trade focuses on Ethereum, with 31,093 ETH shorted for a total of $100 million. The entry point was at $3,270 per ETH, with a critical liquidation level at $3,269 (a very narrow margin), resulting in floating profits of $6.29 million.

Regarding HYPE, the trader holds 728,000 tokens shorted at a value of $16 million, with an entry price of $21.77 and a liquidation point at $30.1. Unlike the previous two trades, this position has a floating loss of $60,000. The final trade involves Monero (XMR), with 824 coins shorted for $450,000, entry at $605, and floating profit of $40,000.

Risks and Opportunities in This Trading Position

This intense focus on short-selling reflects a strong conviction that prices will decline in the upcoming markets. However, such large positions carry significant liquidation risks, especially in the Ethereum trade where the margin of safety is very limited. A sudden surge in coin prices could trigger forced liquidations, potentially capping profits or turning the position into a loss. Nonetheless, the current success in turning $3 million into $11 million demonstrates this trader’s skill in market trend identification and efficient exploitation of short-selling opportunities.