Infamous 'Hyperunit Whale' Loses $250 Million in ETH as Crypto Market Slumps

A major crypto trader known as the 'Hyperunit whale' has suffered a catastrophic $250 million loss after closing out their entire Ethereum long position. The move comes as Ethereum prices have declined sharply, dropping below $2,400 on January 31. The whale's account, now holding only $53, marks a dramatic reversal from October 2025, when the same trader earned $200 million from short positions ahead of a market crash.

The whale’s current position was built as part of a broader strategy to go long on Ethereum and other major cryptocurrencies. By mid-January, the account's exposure exceeded $900 million. However, as prices continued to fall, the position became increasingly unprofitable. Analysts flagged the risk early in January as unrealized losses approached $130 million.

The timing of the whale’s loss is particularly striking given the broader market turbulence. Ethereum has seen a 10% drop over the past 24 hours, marking one of its sharpest declines in months. The crash has also led to significant liquidations, with over $550 million in Ethereum longs wiped out since the start of January 31.

Why Did This Happen?

The Hyperunit whale’s strategy shifted from shorting Bitcoin and Ethereum in October 2025 to long positions in January 2026. The initial success came from timing the market crash following President Trump’s tariff announcement, which triggered over $18 billion in industry-wide liquidations.

The whale’s current loss highlights the risks of leveraged trading, even for sophisticated market participants according to market analysis.

Ethereum’s decline this week was exacerbated by a broader selloff across cryptocurrencies. Bitcoin, for example, fell below $80,000 on January 31, its lowest level since April 2025. Analysts attribute the selloff to a combination of factors, including geopolitical tensions and a shift in investor sentiment following Trump’s nomination of Kevin Warsh as the next Federal Reserve chair.

How Did Markets Respond?

The market response to the Hyperunit whale’s exit has been mixed. While the trader’s loss reflects broader volatility, it also highlights the importance of liquidity in times of stress. BlackRock moved $163 million in Ethereum and Bitcoin to Coinbase Prime on January 28. The deposit suggests continued institutional interest in crypto assets despite recent declines.

Retail investors have also reacted to the selloff. Over the past 10 hours, Ethereum whales have been net buyers on major platforms such as Binance and OKX, accumulating over $5.4 billion in long positions. The activity indicates that some investors see value in the current price level, even as others close out positions to avoid further losses.

What Are Analysts Watching Next?

Technical analysts are closely monitoring Ethereum’s support levels as the market remains volatile. The asset is now trading near the 200-week EMA, a key psychological barrier. A break below $2,400 could push Ethereum toward $1,435 in an extended bearish scenario.

Vitalik Buterin, co-founder of Ethereum, has also weighed in on the situation. He recently withdrew 16,384 ETH (approximately $44.7 million) to support network development and has pledged to personally manage key responsibilities. The move reflects a broader effort to balance Ethereum’s growth with long-term sustainability.

The market remains under pressure, with no clear signs of a near-term reversal. Analysts caution that further liquidation waves could follow if Ethereum fails to stabilize above $2,500. Investors are advised to remain cautious and monitor key technical levels and macroeconomic developments.