Bitcoin News Today: Bitcoin's Bull Run Threatens $250M Whale as Short Squeeze Looms

A Bitcoin whale maintaining a 20x leveraged short position on BTC has seen its unrealized loss expand to $28.08 million, with an additional $4 million in USDC margin recently added to the position on HyperliquidBitcoin Whale Faces $21.31 Million Loss on Short Position^[1]. The whale's short exposure totals $250 million, with an entry price of approximately $111,386 and a liquidation threshold set at $128,729.9. The increased loss reflects BTC's upward trajectory, which has pushed the position further into negative territory and narrowed the whale's margin buffer, raising the risk of liquidation if price volatility persists.

The leveraged short, initially established in March 2025, has faced mounting pressure as Bitcoin's price has remained resilient above key support levels. At 20x leverage, the position's sensitivity to price movements is amplified, with even minor upward swings translating into exponential losses. The whale's decision to inject $8 million in margin in late SeptemberBitcoin Whale Faces $21.31 Million Loss on Short Position^[1] and an additional $4 million in OctoberBTC Whale 20x Short $250M Shows -$22M Unrealized Loss: Short Squeeze Risk, Liquidation Levels, and Funding Rate Signals^[2] underscores the urgency to avoid forced liquidation. Such high-leverage strategies, while potentially lucrative in bearish scenarios, expose traders to severe margin calls during bullish reversals.

Market analysts highlight the growing risk of a short squeeze, where coordinated buying pressure from traders and institutions could force the whale to cover its position, potentially accelerating BTC's upward momentum. The funding rate and liquidation data from platforms like Binance FuturesBTC Whale 20x Short $250M Shows -$22M Unrealized Loss: Short Squeeze Risk, Liquidation Levels, and Funding Rate Signals^[2] indicate heightened short-squeeze probabilities, as narrow margin buffers make large leveraged positions particularly vulnerable to price gaps. Institutional and retail traders are closely monitoring funding rates and open interest metrics to gauge the likelihood of cascading liquidations.

The whale's predicament also reflects broader market dynamics. Bitcoin's dominance in Q4 2025 has been bolstered by institutional inflows and positive macroeconomic signals, including the Federal Reserve's dovish guidanceBitcoin Whale Goes 40 Times Short with $27.5M Position^[3]. These factors have reinforced bullish sentiment, challenging the whale's bearish thesis. On-chain data further suggests a shift in market structure, with whale accumulation of large BTC holdings increasing by 2% in recent weeksBTC Whale 20x Short $250M Shows -$22M Unrealized Loss: Short Squeeze Risk, Liquidation Levels, and Funding Rate Signals^[2], signaling a potential realignment of long-term positioning.

While the whale's short remains a focal point for volatility, the broader crypto ecosystem continues to attract capital. Ethereum (ETH), for instance, has seen renewed interest as it tests key resistance levels around $4,500, with analysts projecting a potential rally toward $6,900 in Q4. However, the Bitcoin whale's struggles serve as a cautionary tale for over-leveraged trading strategies, particularly in an environment where macroeconomic shifts and institutional flows can rapidly alter market direction.