• Hyperliquid whale short closed their position with a $9 million profit
• CT thinks this might be a cybercriminal gambling stolen funds
• A trader opened a massive $376 million short position on Bitcoin with 40x leverage

Cyber Twitter (CT) had its hands full in the last few days when a big cryptocurrency trading event took place on the decentralized exchange Hyperliquid. Namely, a whale who’d shorted Bitcoin, walked away with a $9 million profit.

Now, there’s speculation that the whale might have been a cybercriminal using stolen funds. One X user, ZachXBT, seemed to be pretty confident in the allegation but didn’t want to disclose any more details yet.

What Exactly Happened with the Whale’s Trade?

This entire ordeal started when a trader opened a massive $376 million short position on Bitcoin with 40x leverage, sparking intense market activity on the Hyperliquid platform. This position also drew the attention of other traders who attempted to coordinate a buying surge to drive Bitcoin’s price up and trigger the whale’s liquidation, potentially causing a short squeeze.

In the end, the whale “won”, earning $9 million in profit, as the CT declared that they lost the war. 

How Do These Whale Battles Typically Play Out?

Situations like these aren’t that uncommon in the crypto community, where traders attempted to counter the whale’s short position. It usually goes in a way where the trader is betting the Bitcoin’s price will drop, but if the price rises instead, they face a significant risk of liquidation. 

To increase the price, other traders, or in this case CT, attempt to push Bitcoin’s price. If successful, the whale would be forced to buy back Bitcoin at a higher price to cover the short.

Evidence Points to Possible Cybercrime

The theory that the Hyperliquid whale is in fact a cybercriminal gambling stolen funds could have some merit considering that cybercriminals often target platforms to launder money or exploit compromised accounts.

This whale in particular short positioned over 5,400 Bitcoin, which is a huge amount. 

Did the Counter-Trade Have Any Impact on Bitcoin’s Price?

It’s interesting to note that the CT’s effort to fight back against this whale actually made Bitcoin’s price go up. At the time, the price was at around $83,183, and shortly after CT got involved, it rose to approximately $84,690.
This wasn’t the only whale activity on Hyperliquid recently, as several days ago, the platform suffered a loss exceeding $4 million after being compelled to liquidate a massive 175,000 ETH long position, worth $340 million.