BTC Whale Targets in Market ‘Manhunt’ Over $450M Short Bet

A massive Bitcoin short position worth approximately $450 million has drawn the attention of crypto traders worldwide. Based on latest reports, an anonymous trader on Hyperliquid has taken an aggressive 5,167 BTC short position with 40x leverage, sparking a coordinated effort to liquidate the whale’s bet before it causes ripple effects in the market.

The situation has escalated into a high-stakes market battle, with a collective of traders actively working against the whale’s position. Crypto analyst CBB, who first spotted the trade, publicly called on others to join the effort, stating:

“If you are willing to hunt this dude with size, drop a DM. Setting up a team right now and already got good size.”

Whale’s BTC Position Faces Mounting Pressure

According to on-chain data from Hypurrscan, the whale initially opened its short position on March 16, aiming to profit from a potential Bitcoin price decline. On March 17 at 6:30 AM UTC, the trader executed two trades via Time-Weighted Average Price (TWAP), selling a combined 208 BTC at $83,392, totalling more than $18 million in value.

At 4:30 AM UTC, as market conditions turned against them, the whale added $7.5 million in collateral to the short position in an attempt to avoid liquidation. Despite this, on-chain records show the position currently carries an unrealized loss of $1.1 million. The trader’s long position is considerably smaller, holding 571,715 MELANIA tokens valued at $390,000, using 5x leverage. This suggests a hedge against their main Bitcoin short position, but its impact remains minimal compared to the larger bet against BTC.

With traders aware of the whale’s exposure, a group led by CBB initiated a coordinated effort to counter the position. The team, composed of high-net-worth traders, had gathered significant capital to take advantage of the whale’s risk.

“7 figs size only,” CBB posted, indicating that only traders with at least seven-figure capital could participate.

Shortly after the campaign was launched, Bitcoin’s price surged from $83,183 to over $84,690, forcing the whale to inject $5 million USDC into their margin account to prevent immediate liquidation. While the coordinated effort has applied pressure, the whale has managed to evade forced closure by adjusting their position through TWAP strategies—a method allowing them to enter or exit trades gradually without major slippage.

Hyperliquid’s Response to the Market Frenzy

The viral market maneuver caught the attention of Hyperliquid’s official account, which commented on the unfolding situation:

“When a whale shorts $450M+ BTC and wants a public audience, it’s only possible on Hyperliquid.”

The statement highlights the protocol’s increasing influence in crypto leverage trading, where high-profile trades are executed with full visibility on-chain.

A Growing Trend of High-Leverage Crypto Trades

This isn’t the first time Hyperliquid has been at the center of major leveraged bets. On March 12, a whale reportedly took a 50x leveraged long position on 175,000 ETH worth $340 million. When the trade began to turn against the investor, Hyperliquid was forced to absorb the position at $1,915 per ETH, incurring a $4 million loss.

While such large leveraged trades have become more common, the current Bitcoin (BTC) short has introduced a new dynamic—the active participation of retail traders and institutions working together to counter a high-stakes bet.

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What Comes Next?

As the battle continues, traders remain locked in a game of market positioning and liquidation avoidance. The whale’s ability to sustain the 40x leveraged short will depend on Bitcoin’s price movements in the coming days. If BTC continues to climb, the pressure to inject more collateral or risk liquidation will only increase.

For now, the whale is still in the game, but as past cases have shown, high leverage can be a double-edged sword; one miscalculated move, and the market could force an end to the position.

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FAQs

1. Why is this BTC whale being targeted?

Traders believe the whale’s highly leveraged short position could disrupt the market. By pushing BTC’s price higher, they can force liquidation and remove a potential bearish influence.

2. What happens if the whale is liquidated?

If BTC’s price rises too high, the whale won’t have enough collateral to maintain the position, forcing an automatic closure that could trigger further price increases.

3. Has this happened before?

Yes, large leveraged positions have been liquidated in the past. Hyperliquid previously absorbed a $4 million loss when a whale’s ETH position collapsed.

4. What are the risks of leverage trading?

Leverage can amplify both profits and losses. High leverage increases exposure to price movements, making it easier to be liquidated if the market moves against the trade.

Glossary

Time-weighted average Price (TWAP): A trading algorithm used to execute large orders in smaller increments to minimize price impact.

Leverage: Borrowing funds to amplify trade size, increasing both potential gains and losses.

Unrealized Profit and Loss (PNL): The current value of an open position based on market movements, yet to be realized as profit or loss.

Forced Liquidation: The automatic closure of a leveraged position when margin requirements can no longer be met.

Collateral: Funds deposited to maintain a leveraged trade and prevent liquidation.

References

1. Cryptonews
2. AIInvest
3. NFTevening
4. Reddit
5. U.today
6. Chaincatcher
7. Coingecko