Whale shorts BTC/ETH with an unrealized loss of 6.37 million, adds 4.8 million in margin to maintain the position

A certain whale’s short-selling strategy is paying the price. According to the latest news, the BTC and ETH 10x leveraged short positions held by this whale are currently floating losses of over $6.37 million. To avoid liquidation, they have urgently deposited 4.8 million USDC as margin on the Hyperliquid platform. This additional funding vividly demonstrates how risky high-leverage trading can be—even well-capitalized whales can struggle in the face of market volatility.

Current Situation of Short Selling Losses

Position size and loss status

The whale address (0x218A…7Da2) holds 10x leveraged short positions in BTC and ETH, with an unrealized loss of $6.37 million. This indicates that since establishing the short, the market has moved upward enough to put the short seller in trouble. In the crypto market, 10x leverage is already considered relatively aggressive, and a loss of this scale can shake any trader’s confidence.

Implications of urgently adding margin

Depositing 4.8 million USDC reveals key information: the whale is actively managing risk, attempting to lower the liquidation price by increasing margin to gain more buffer space. This is not an optional move but a forced response—once margin is insufficient, the position faces forced liquidation. In high-leverage environments, liquidations often happen instantly, leaving no room for maneuver.

Market Divergence Background

Short sellers vs. long buyers

Interestingly, there are completely opposite stories in related reports. Using Lookonchain monitoring, another whale is going long on assets like ZEC, BTC, ETH, SOL, with leverage of 10-20x, currently holding a floating profit of $14.69 million. This creates a stark contrast:

The same leverage tools, different directional choices, lead to completely opposite outcomes. This not only reflects the current upward market trend but also highlights the decisive role of directional judgment in high-leverage trading.

Risk Insights

Hidden Costs of Leverage Trading

This case once again proves a well-known but often overlooked truth: high leverage amplifies not only gains but also risks. A floating loss of $6.37 million may be astronomical for ordinary investors, but for a whale holding a 10x short, it can pose a substantial threat. More critically, this loss is ongoing—if the market continues to rise, the loss will grow, potentially leading to liquidation.

Market Sentiment Turning Signal

The whale’s choice to short BTC and ETH indicates that at some point, it believed the market would decline. But reality has given it a harsh slap. This may reflect a shift from a pessimistic to an optimistic market sentiment, or a gradual erosion of the shorting force. When large funds are losing money, it usually means the mainstream market direction has been established.

Summary

This whale floating loss incident highlights several key points: First, even well-funded large players can face huge losses if they bet on the wrong direction; second, high-leverage trading requires strong risk management awareness and sufficient capital reserves; third, the current market shows clear divergence between longs and shorts, with short sellers generally in trouble while long holders profit. For ordinary investors, this case serves as a stark warning—the use of leverage is a double-edged sword, and the cost of wrong directional judgment can be beyond imagination.