Market rebound kills the shorts: Hyperliquid six traders liquidated over $17 million, BTC leads the rally

The cryptocurrency market today experienced a significant rebound, with BTC rising 4.70% within 24 hours. However, this rebound has been a disaster for short traders on Hyperliquid. According to Hyperinsight monitoring, six traders were liquidated due to holding short positions in BTC, ETH, and SOL during the rebound, with total losses exceeding $17 million. Among them, BTC shorts suffered the heaviest losses, with four traders being liquidated for a total of over $9.96 million.

Liquidation Details: Shorts Fail Across the Board

These liquidations mainly concentrated in BTC and SOL, reflecting a severe underestimation of the market rebound by short sellers.

Market Rebound Background: Bulls Regain Initiative

According to the latest data, BTC is currently priced at $95,570.71, with notable recent gains:

• 24-hour increase of 4.70%
• 7-day increase of 2.98%
• 30-day increase of 6.83%

This rebound was strong enough to wipe out highly leveraged and improperly stop-lossed short positions. As an on-chain perpetual contract platform, Hyperliquid’s high leverage trading amplifies such risks.

Interesting Comparison: Whales Turning Around

It’s worth noting that some large traders are adjusting their strategies amid this rebound. According to recent monitoring, a whale address known as “Strategy Counterparty” closed ETH, BTC, and SOL short positions this morning, then reversed to open long positions. It has now become the largest long position holder on BTC on Hyperliquid, with a total position size of $233 million.

This switch from short to long is not an isolated case on Hyperliquid. Several top whales on the platform have been reducing shorts or shifting to longs over the past few days, possibly indicating a change in market sentiment.

Risk Warning Behind Liquidations

This event exposes several issues:

• The double-edged sword of high leverage: Hyperliquid supports leverage over 20x, amplifying both profits and risks
• Short squeeze: Multiple liquidations of shorts suggest a strong consensus of bearishness, but this consensus is most fragile during rebounds
• Stop-loss management: These liquidated traders may not have set proper stop-losses, or their stops were quickly broken

Summary

This liquidation wave essentially reflects a rapid shift in market sentiment. From persistent short squeezes to sudden rebound-driven short covering, and now large traders switching from short to long, the market is undergoing a clear directional change. For high-leverage platforms like Hyperliquid, traders need to manage risks more cautiously and avoid over-committing to a single direction. Additionally, it reminds us to pay attention to the movements of major whales—when top whales start turning, it often signals significant structural changes in the market.