Ethereum News Today: Abraxas Capital Faces $144M Loss on ETH Short as Crypto Market Turns Bullish 41.89% in 30 Days

Generated by AI AgentCoin World
Sunday, Aug 10, 2025 3:23 pm ET1min read
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Aime RobotAime Summary

- London-based Abraxas Capital faces $144M losses from 113,819 ETH short positions amid crypto market bullishness.

- Ethereum's 41.89% 30-day gain exposed 76% of total losses, turning hedging strategies into risky bets.

- Market observers warn of potential short squeeze as on-chain tools track liquidation risks and strategic shifts.

- The case highlights crypto market's bear-to-bull cycle challenges for short-based strategies and institutional transparency.

Abraxas Capital, a London-based cryptocurrency derivatives firm, is currently grappling with over $190 million in unrealized losses from its short positions in major crypto assets, including

Ethereum
(ETH),
Bitcoin
(BTC),
Solana
(SOL), HYPE, and
SUI
[1]. On-chain data analyzed by platforms such as Lookonchain reveals that the firm holds a short position of 113,819 ETH, valued at approximately $483 million, which has already incurred a loss of more than $144 million [2]. This single exposure accounts for nearly 76% of Abraxas’s total current losses [3].

The firm’s strategy of shorting during a traditionally bearish cycle has previously yielded profits, such as the $28 million in funding rate revenue earned from similar positions in the past [4]. However, as the market has swung into a bullish phase—with Ethereum rising nearly 41.89% in the past 30 days and trading at $4,234.84 on August 10, 2025—the firm’s current positions are proving detrimental [5]. The unexpected market trajectory has turned what was once a hedging strategy into a costly gamble.

Abraxas’s situation highlights broader concerns about the use of short-selling as a risk mitigation tool in crypto markets. With institutional investors increasingly adopting a long bias and macroeconomic factors reinforcing upward trends, the effectiveness of short-based strategies is being called into question [6]. On-chain analysts are closely tracking Abraxas’s accounts through tools like hyperdash.info to monitor any potential liquidation risks or strategic recalibrations [7].

Market observers are now watching for signs of position adjustments or coverings, as a forced liquidation could trigger a short squeeze, potentially further accelerating price gains [8]. The firm has yet to issue a public statement addressing the issue, despite the growing attention from on-chain analytics and social media [9].

The case of Abraxas also underscores the increasing role of on-chain analytics in tracking institutional activity within the crypto markets. Analysts and platforms like Lookonchain are now pivotal in identifying large players and their strategies, offering a level of transparency that was previously absent in the sector [10].

Source:

[1] Blockchain.News, https://blockchain.news/flashnews/abraxas-capital-s-2-accounts-face-190m-unrealized-loss-on-eth-btc-sol-shorts-113-819-eth-short-144m-on-chain-data

[2] PANews, https://www.panewslab.com/en/articles/67192642-c350-494d-a600-a8aa47b2047b

[3] PANews, https://www.panewslab.com/en/articles/0ca69b11-0823-445a-b19d-56a6dbf0b61d

[4] Blockchain.News, https://blockchain.news/flashnews/abraxas-capital-crypto-shorts-see-usd-190m-unrealized-loss

[5] Binance, https://www.binance.com/square/post/281141****1922

[6] BlockchainReporter, https://blockchainreporter.net/cardano-vechain-and-unilabs-3-cryptos-you-cannot-ignore-if-you-want-220-gains/

[7] @lookonchain, https://twitter.com/lookonchain/status/1954392919433179335

[8] Bitget, https://www.bitget.com/news/detail/12560604904544

[10] hyperdash.info, https://hyperdash.info/trader/0x5b5d5