A whale recently made bold moves in the crypto market. Lookonchain reported that the whale deposited 4.08M USDC into GMX.Â
The purpose was to short ETH. However, the trader quickly closed the position. The whale then switched to a long position. This switch secured a profit of $177K in ETH.
Rapid Trades on GMX and Hyperliquid
The whale’s moves did not stop there. Next, he deposited 2.3M USDC into Hyperliquid. This time, the plan was different. He went long on ETH with 25x leverage. At the same time, he shorted BTC using 40x leverage.
These moves show a dynamic approach. The whale adjusted positions quickly. His trades reflect active market monitoring.
Earlier in the day, the same whale opened a long position of 175,179 ETH. This position was valued at around $335.6M. The leverage used was massive at 50x. Soon after, he closed 14,945 ETH.
This closure was worth about $28.7M. The remaining 160,234 ETH, valued at roughly $306.85M, was left to be liquidated. This series of trades brought him a profit of $1.86M. In the process, Hyperliquid lost $4M in one day.
Also Read: Hyperliquid TGE Participants to Receive $ANIME Airdrop Rewards: Details Below
Bybit CEO Weighs In
Ben Zhou, the CEO of Bybit, shared his thoughts. He discussed the massive liquidation on Hyperliquid. Zhou pointed out that the trade led to a $4M loss on the platform. He explained how high leverage can cause serious issues.Â
Both centralized and decentralized exchanges face risks with such moves. The whale managed to exit quickly and leave the burden to Hyperliquid. Zhou’s comments underline the dangers of extreme leverage.
Whales and the Power of Leverage
Whales often use leverage to make quick profits. They borrow funds to amplify their trades. This strategy can lead to huge gains. However, it also comes with great risk. The use of 25x, 40x, or even 50x leverage shows their risk appetite.
When a whale moves quickly, they can create market ripples. These ripples can lead to large liquidations on platforms like Hyperliquid. The ability to exit positions swiftly is key to their success.
A notable crypto whale has also made headlines. This whale reportedly secured a floating profit of around $26M. The profit came from a carefully planned trading strategy on Hyperliquid. The strategy involved 48 perpetual futures positions. Out of these, 47 were short positions.
The recent moves by the whale have shaken the ETH market. His rapid trades show both skill and risk. The resulting profits and losses underline the power of leverage in crypto trading.