Hyperliquid’s best trader has created a large short position in Bitcoin (BTC). As mentioned in a post by X’s Whale Watch Perps, a trader shorted 12.89,000 worth of BTC at 106,521. This was in addition to an existing short position of 359.58,000, with an average entry price of 108,087.30. This report was published on October 17, 2025 at 07:08 UTC. According to the data presented by Hyperliquid, this trader is one of the highest in terms of profit and loss (PnL), which refers to experience and extensive trading history.
Hyperliquid’s top P&L trader shorted $BTC by $12.89,000 at $106,521.00.
This user’s current position is short $359.58K of $BTC at an average price of $108,087.30.
This user will be liquidated for $1,503,090.87.
— Whale Watch Perps (@whalewatchperps) October 17, 2025
It immediately attracted attention when the liquidation price of $1,503,090.87 was reported. This value cannot be found in normal margin calculations. On most exchanges, liquidation of short positions is below the entry price. This anomaly gives a clue to an error or misunderstanding of the data.
The growing influence of hyperliquid
Hyperliquid is a fully on-chain layer 1 exchange with a decentralized order book. There are over 100 perpetual futures and spot pairs. Each order is on-chain, so you can see trader actions in real time. This transparency is what drives websites like Whale Watch Perps, which track whale activity to determine market sentiment.
This trading is aimed at professional traders with leverage and sophisticated strategies. Real-time order visibility allows you to easily track changes in market direction based on large trades. The on-chain transparency used by Hyperliquid also avoids price manipulation seen in centralized venues.
Bitcoin Short: Trader Strategy
Short selling refers to selling BTC in advance in anticipation of a price drop. They are then bought back by the trader at a lower price, and the trader makes a profit on the difference. Here, the trader sold 0.121 BTC (12,890 /106,521) in monetary terms. The total exposure in some short-term trades is approximately 3.327 BTC.
Bitcoin was trading at around $110,685 at the time of posting. This price is above the trader’s average entry in the short term, meaning that losses are being incurred. If the position is leveraged 10x, this small increase can result in large paper losses. Whale Watch Perps statistics prove that short traders are active and likely under stress. The position will remain a loss position until BTC falls below 108000.
Liquidation price is under scrutiny
I don’t think the liquidation price of 1.5 million yen is realistic. Simply put, a temporary liquidation occurs when the price increases by the margin of the elimination margin. BTC Purp typically allows 20x to 50x leverage on Hyperliquid. The liquidation of the short sale price of $108,087 is estimated to be close to 97,000x with 10x leverage, or less than 500,000x, but this is easily estimated.
According to technical information provided by TradingView, BTC recently reached a long-term uptrend line. This is considered a negative finding by analysts. The price briefly returned to $110,000, but momentum seems to be lacking. CoinGlass’ long/short ratio as of October 13, 2025 showed that the market was highly short-biased, with the exchange recording over 90% short positions.
bearish gamble
Despite the high volatility, there are signs supporting traders’ short positions. If BTC spikes above $112,000, leveraged shorts will incur huge losses or be forced to liquidate. On the one hand, such a decline will bring quick profits, especially in the case of high leverage. Market uncertainty is more pervasive due to the actions of traders. Since early October, institutional demand for Bitcoin has declined. Both HyperLiquid and Deribit futures open interest data are high on the short side. This reflects the conservative approach most traders take.
Hyperliquid’s on-chain visibility helps retail traders monitor the movements of such whales. However, the risk of copying a whale’s strategy is high. By leveraging leverage, both profits and losses can be multiplied within minutes. A given stance highlights the speed at which emotions can change. The bearish theory is consistent with the recent trend on the charts, but a price explosion based on the news would turn things around in minutes. The fact that Bitcoin is trading at an amount of approximately 110,685 makes this trader a target for attack. The market is waiting for the next clue to determine if this short position will work. To this day, Hyperliquid remains an open platform for tracking big and risky bets on the most expensive assets in the cryptocurrency market.
