Whale shorts 160 million BTC with 40x leverage! Is it a copy trading opportunity or a death trap?
On-chain monitoring shows that the 'Hyperliquid Whale', which once gambled with 50x leverage, suddenly closed its long position on LINK (losing 1.27 million USD) 4 hours ago, and reversed to short BTC with **40x leverage**, betting on 1937 Bitcoins (worth 160 million USD), with an opening price of 84,287 USD and a liquidation price of 85,158 USD! If BTC rises more than 1%, the whale will be liquidated to zero, and the long-short showdown is imminent!
The whale's large short position may trigger a follow-up sell-off, with the current BTC price at 84,305 USD, just 0.9% away from the liquidation price, and short-term volatility may be dramatically amplified.
Hyperliquid allows for 40x ultra-high leverage, and if prices fluctuate violently, a series of forced liquidations may trigger a liquidity cascade, retail investors need to be wary of 'spike' risks.
If BTC falls below 83,800 USD (4-hour support), it is advisable to short with a light position, targeting 82,000 USD, with a stop loss at 85,200 USD.
If the price breaks through 85,158 USD against the trend, the whale's liquidation will trigger short covering, going long again with a target of 86,000 USD.
For those holding BTC spot, it is recommended to buy call options with a strike price of 85,000 USD to guard against extreme upward risks.
40x leverage is like 'tasting blood on the blade', copying trades should keep positions within 5% of total funds, and set automatic stop losses! The whale has already lost a million USD, do not blindly copy strategies.
