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Sujit Kumar
Mar 18, 2025
by Sujit Kumar

Whale’s $520M Bitcoin Short Sparks Speculation of Market Trap

Bitcoin Short Sparks Speculation

Table of contents

  1. Traders Attempt to Force Liquidation
  2. Analysts Debate Whale’s Strategy
  3. Hyperliquid Adjusts Leverage After High-Stakes Plays
A massive $520 million Bitcoin short position placed on Hyperliquid, a decentralized exchange, has sent shockwaves through the crypto market. On March 16, a whale entered this highly leveraged trade with 40x leverage, triggering widespread speculation about their motives.

Traders Attempt to Force Liquidation

The short position, entered at $83,898, has a liquidation price of $85,561—just a 1.75% price move away. The setup quickly attracted attention from retail traders. Pseudonymous trader Cbb0fe even rallied the community on X to push Bitcoin’s price upward. Within minutes, Bitcoin surged by 2.5%, nearly hitting the whale’s liquidation threshold before more margin was added to increase the liquidation price.

Analysts Debate Whale’s Strategy

According to 10x Research, this incident highlights a new trend—democratized stop-loss hunting, where independent traders collaborate to move markets. Some experts believe the whale’s position might not be reckless but rather a strategic “self-liquidation” move to trigger a price rally.

Crypto analyst Josh Man suggests the whale may be holding a larger long position elsewhere, benefiting from the liquidation of their own short bet.

Hyperliquid Adjusts Leverage After High-Stakes Plays

This comes shortly after another major bet on Ethereum, where a trader lost $4 million, prompting Hyperliquid to reduce leverage limits on Bitcoin and Ethereum.

Now, all eyes are on Bitcoin’s next move—will the whale’s gamble pay off, or will retail traders succeed in forcing a liquidation?

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Whale’s $520M Bitcoin Short Sparks Speculation of Market Trap
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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