Crypto Whale, which opened over 300 heavily leveraged short positions in Bitcoin and reached $521 million, closed those transactions on Tuesday, receiving a total profit of $3.9 million.
This trade was completed in a highly liquid, distributed, decentralized permanent exchange, satisfying resistance from traders who tried to pump Bitcoin over a short entry of $83,898 in whales.
Short trading earns money when the price of an asset falls, but with 40x leverage, moving 2% to Bitcoin rise at $85,591 will clear that position. In response, the pseudonymous trader CBB0FE gathered the group to put $10 million into Bitcoin, attempting to move prices beyond the whale’s clearing point.
However, Bitcoin remains unstable, rising to $84,573 before retreating to $82,295. Realising that there was a great opportunity, the whale closed all positions in two minutes. Specifically, we covered shorts equivalent to 208.1 BTC.
The risk was high given that high lipids allow up to 40 times leverage. Cross’s position wiped out the entire whale portfolio.
On-chain analytics firm Bubblemaps shot down speculation that the whales have inside information, noting that related news has not preceded the transaction.
The whale previously wiped out $4 million from Hyperliquid’s community-owned liquidity provider as a result of a $285 million bet on Ethereum. High lipids were reacted by cutting the maximum leverage of Bitcoin and Ethereum.
Despite the risks, the whales are making $9.37 million in less than 30 days. However, the latest move from traders was $2.7 million in length for Solana’s meme coin. If prices fall 9.78%, liquidation is nearing, but so far no one has moved to challenge this position.