cyrpto 40x, 520M, Bitcoin, Hyperliquid, leverage, setup, short Mark March 18, 2025 0 Comments

Was $520M Bitcoin short 40x leverage on Hyperliquid a setup?

Analysts speculate that a whale could have set up a 40x Bitcoin lever position of $ 520 million on the hyperliquid as a trap to trigger a long time.

On March 16, a bitcoin (BTC) Whale has placed a huge $ 520 million short position on hyperliquid (THRESHING) using a 40x lever effect, making it one of the largest known trades on the decentralized scholarship.

With a liquidation price of $ 85,561, the trade would be destroyed if Bitcoin increased only 1.75% of its entry to $ 83,898. This immediately drawn the attention of traders who saw an opportunity to force a liquidation.

The pseudonym trader CBB0FE took the time on X to reach a group to push the higher bitcoin price and trigger liquidation. The price jumped 2.5% in a few minutes the same day, reaching almost the whale threshold before adding more funds to increase their liquidation price.

According to March 17 of research 10x reportAnalyst Markus Thielen noted that this event was part of an increasing trend involving the democratization of hunting stop-loss. In this trend, independent merchants, not only institutions, coordinate to move the market, supplied by the transparency of lever trading on Dex.

Some analysts, however, believe that the massive position of the whale could be a calculated strategy rather than the case of a negligible short term. According to the analyst of cryptocurrencies Josh Man, the whale could intentionally expose their position to the liquidation in order to support a price rally, a rare tactic known as “self-liquidation”.

So there is a fairly rare and not widely used self-managing technique and it looks a bit like that. In such events, the seller actually creates a bomb designed to leave and create a gathering from the liquidation of his own short. We could expect he has … https://t.co/jncnclo2e0

– Josh Man (@ joshmandell6) March 17, 2025

If the whale has an even greater long position elsewhere, its own short liquidation could make bitcoin above, significantly benefiting in their long position.

This is not the first time Hyperliquidal has seen such games with high issues. Last week, a merchant placed an Ethereum with a lever effect of $ 285 million (Ethn) Bet, which led to a loss of $ 4 million for the platform. In response, hyperliquid reduced Lever limits for Bitcoin and Ethereum.

Now the cryptographic community is looking at the Bitcoin prices movement. A more ascending momentum could be fed if the short position of the whale is liquidated. In all cases, independent traders and whale are currently engaged in a risky competition game with high issues in this profession.