Hyperliquid Trader Returns with $333M Short on Bitcoin

The Hyperliquid trader who previously forced rule changes on the platform is back with a massive Bitcoin short

According to Simononchain via X, a wallet linked to the trader wth the tag “0xf3f4…057c” has placed a huge $333.9 million short bet on Bitcoin using 40x leverage. 

Hyperliquid Trader goes $333 short on BTC | Source: x.com/simononchain

They entered at $84,040.80, and since Bitcoin is now trading at $84,294, they’re already down $1 million in unrealized losses.

This is the same trader who previously executed a high-risk 50x ETH long position with just $4.3 million in margin.

They made a smart move by withdrawing funds strategically, which triggered an auto-liquidation event. That left Hyperliquid’s HLP Vault with a $4 million loss while the trader walked away with a $1.8 million profit. 

After that, a lot of users thought the platform was hacked, but Hyperliquid confirmed that “There was no hack or exploit involved.”

So, to stop this from happening again, the platform updated its margin rules. They introduced a 20% margin requirement and reduced leverage limits to 40x for Bitcoin and 25x for Ethereum. But now, the same trader is back, and they are trying out those new rules with another big investment. 

Currently, the trader is at risk. Their margin usage is at 111%, meaning they are extremely close to losing all their money. Should the price of Bitcoin move against them, they would lose their position in no time.

Meanwhile, a trade like this, considering its big scale, does not only affect the trader but the whole market if things end up badly.

Hyperliquid’s HLP Vault has around $450 million locked up, so the $4 million loss last time was just a setback. But with this new short, the stakes are even greater.