Popular expands short selling operations on HYPE and three other coins worth $261 million

In recent hours, blockchain analysts have detected intense activity from a professional trader rapidly expanding their short-selling strategy. According to Odaily’s report based on analyst Yu Jin’s analysis, this trader now holds short positions on four major cryptocurrencies totaling $261 million.

This intense activity reflects a strong bearish bet on the market, as the trader began their strategy last week by shorting Ethereum, then used the unrealized profits to expand into additional coins.

How the trader turned $3 million into $11 million

The trader started with a modest capital of $3 million and, through leveraged short trading, was able to grow their position to $11 million. This jump indicates a well-planned strategy and effective capital management, using profits from initial trades to fund additional positions.

The specific trader address (0xD83…Fd7) has become a focal point for blockchain analysts monitoring the moves of major players in the perpetual contract market.

Details of the four short positions

The trader currently maintains four short positions distributed as follows:

Bitcoin (BTC): Largest position at $150 million

• Short amount: 1,640 BTC
• Entry price: $92,120 per coin
• Current price: $71,350 (down from entry)
• Liquidation price: $94,732
• Current unrealized profit: $1.98 million

Ethereum (ETH): Second largest at $100 million

• Short amount: 31,093 ETH
• Entry price: $3,270
• Current price: $2,080 (down from entry)
• Liquidation price: $3,269 (very close to entry)
• Current unrealized profit: $6.29 million

Hyperliquid (HYPE): Third at $16 million

• Short amount: 728,000 HYPE
• Entry price: $21.77
• Current price: $31.06 (significantly up)
• Liquidation price: $30.1
• Current unrealized loss: $60,000

Monero (XMR): Fourth at $450,000

• Short amount: 824 XMR
• Entry price: $605
• Unrealized profit: $40,000

Potential profits and losses

So far, the trader has realized approximately $8.27 million in unrealized gains from successful short positions in Bitcoin, Ethereum, and Monero. However, the loss on HYPE presents a major risk, as the liquidation price is very close to the current price of $31.06, meaning any further increase could trigger a forced close of this position.

This dynamic suggests the trader is betting on continued downward trends in most markets, but may have mis-timed their entry on HYPE, or this position could be a hedge against large gains in other holdings.

What this short-selling activity means for the crypto market

Large-scale short positions often indicate market expectations. In this case, the focus on Bitcoin and Ethereum profits points to a continued bearish outlook from this major player.

However, it’s important to note that massive short positions do not necessarily reflect the overall market sentiment. They could be high-risk strategies targeting specific price ranges or short-term volatility. The presence of large short positions across multiple coins increases the risk of forced liquidations if the market moves against this trader’s expectations.