Bitcoin News Today: Crypto Traders Mobilize to Hunt $423M Bitcoin Short as Liquidation Looms

A major whale on Hyperliquid executed a high-leverage Bitcoin short position worth approximately $423 million in October 2025, triggering widespread market attention and a coordinated effort to liquidate the trade. The position, opened with 40x leverage, has a liquidation price of $86,198, and currently sits in a small profit as Bitcoin trades near $83,460 . The whale's wallet address, 0xf3F496C9486BE5924a93D67e98298733Bb47057c, has drawn scrutiny for its aggressive betting strategy and potential ties to North Korean hackers .

The short position's scale and leverage have sparked a public "whale hunt" on social media, with crypto figure CBB rallying traders to push Bitcoin's price higher to trigger liquidation. CBB claimed to have secured "eight figures" in capital for the effort and hinted at involvement from Justin Sun of Tron and Eric Trump . However, the position remains intact, with Bitcoin currently trading just 3% above the liquidation threshold. Analysts note that pushing BTC 1% higher would require at least $300 million in capital, based on Kaiko's market depth data .

The whale's strategy appears to involve a dual-exchange approach, shorting on Hyperliquid while simultaneously going long on a centralized exchange (CEX). This tactic, which aims to profit from a short squeeze, was anticipated by market makers who reportedly liquidated the whale's CEX position first before driving BTC higher . Hyperliquid has praised the event as a demonstration of decentralized trading transparency, stating that such high-profile positions reinforce the platform's commitment to on-chain visibility .

In parallel, another Hyperliquid whale recently added $23 million in USDC to defend a 20x leveraged short position valued at $249 million. Despite a $21.5 million unrealized loss, the position received $7 million in funding payments during Bitcoin's rebound, illustrating the mechanics of perpetual futures markets . The whale's actions highlight the risks of high-leverage trading, where minor price movements can lead to significant gains or losses.

Market observers have noted broader shifts in whale activity, with capital rotating from Bitcoin to Ethereum. For instance, a whale deposited 1,000 BTC ($109 million) on Hyperliquid to short Bitcoin while buying Ethereum, capitalizing on Ethereum's staking yields and regulatory clarity . However, leveraged ETH positions exceeding $295 million have also faced liquidation risks during volatile periods, underscoring the systemic risks of concentrated capital.

Hyperliquid's role in facilitating these trades has drawn both praise and criticism. While the platform's sub-second transaction finality and low fees (0.01%) attract high-leverage traders, its lack of leverage caps for certain pairs has led to extreme risks. In August 2025, the platform reduced BTC leverage to 40x and ETH leverage to 25x following a surge in unrealized losses . Despite these measures, the $3.1 billion in USDC locked on Hyperliquid reflects its appeal as a hub for speculative trading .

The ongoing whale short positions underscore the dual-edged nature of leveraged crypto derivatives. While such trades can amplify market liquidity and price discovery, they also contribute to volatility and panic selling. For retail investors, the events highlight the importance of risk management, including avoiding excessive leverage and monitoring liquidation levels. As the crypto market evolves, the interplay between whale strategies and decentralized infrastructure will remain a critical factor in shaping price dynamics.

Source: [1] BeInCrypto (https://beincrypto.com/whale-hunt-hyperliquid-bitcoin) [2] Blockchain.News (https://blockchain.news/flashnews/whale-adds-23m-usdc-to-defend-20x-btc-short-on-hyperliquid-249m-notional-21-5m-unrealized-loss-7m-funding) [3] The Currency Analytics (https://thecurrencyanalytics.com/altcoins/hyperliquid-whale-trading-shifts-capital-from-bitcoin-to-ethereum-194088) [4] Daily Hodl (https://dailyhodl.com/2025/10/08/10000000000-bitcoin-whale-abruptly-moves-363810000-in-btc-to-hyperliquid-is-another-ethereum-swap-incoming/)