Hyperliquid whale closed $1B Bitcoin short, losing $15.87M.
40x leverage amplified losses during Bitcoin's price spike.
Bitcoin surged to $108,370, triggering the liquidation.
Event highlights risks of high-leverage crypto trading.
Market volatility may impact crypto stocks and ETFs.
#BitcoinShort #HyperliquidWhale #CryptoTrading #MarketVolatility #LeveragedTrading
Hyperliquid Whale Loses $15.87M on $1B Bitcoin Short
A major trader on Hyperliquid closed a $1 billion Bitcoin short position at a $15.87 million loss on May 25, 2025. The trade used 40x leverage, magnifying both potential gains and losses.
The whale bet against Bitcoin's price, expecting a decline. Instead, the market surged upward, forcing the trader to exit the position. The closure occurred between 06:09 and 06:15 UTC.
Bitcoin spiked to $108,370 at 06:09 UTC. Within nine minutes, the price rose by $1,322, reaching levels that triggered the liquidation. The whale's liquidation price was set at $110,450.
Details of the High-Stakes Bitcoin Trade
The trader opened the $1 billion short position using 40x leverage, risking nearly $50 million in margin. This high leverage amplified the impact of market movements.
When Bitcoin's price surged, the trader faced mounting losses. The rapid upward movement left no room to hold the position, leading to the forced closure.
Data shows the whale incurred a $15.87 million loss in a single trade. The event unfolded over a brief six-minute window, highlighting the speed of crypto market shifts.
This trade reflects the volatility of leveraged positions. A small price increase can lead to significant losses, especially with high leverage like 40x.
Hyperliquid, a decentralized exchange, enables such large-scale trades with transparency. The platform's open interest has recently hit record highs, drawing attention to its role in crypto trading.
Market Impact and Whale Activity
The liquidation contributed to increased market volatility. Bitcoin's sudden price spike signals heightened whale activity, which can influence broader market trends.
Short squeezes, where rising prices force short sellers to buy back at higher rates, often amplify volatility. This event underscores the risks of such strategies in the crypto market.
