Whale’s High-Risk ASTER Gambit Backfires with $1.8M Loss Amid Volatile Market Bet

Hyperliquid’s largest short position on ASTER, a decentralized perpetual exchange token, was closed on September 21, 2025, according to on-chain analysis by Ai Yi. The position involved the liquidation of 1,293,000 ASTER tokens, resulting in a realized loss of $390,000. Following the closure, the whale increased its exposure by acquiring an additional 3,153,000 ASTER tokens, raising the total position to 5,110,000 tokens. The new position, however, now carries an unrealized loss of $1,798,000, with an entry price of $1.05 per token . This move reflects a high-risk strategy amid volatile market conditions, where the trader adjusted exposure after a significant drawdown.

The original short position, opened at an entry price of $0.7791, was characterized by a 3x leverage and a notional value of $3.78 million. By September 20, the position had already incurred a floating loss of $1.352 million, as noted by on-chain analyst @ai_9684xtpa The whale/institution that purchased ASTER for 7.5 million USDT is suspected of hedging its short position on Hyperliquid^[3]. This loss was attributed to ASTER’s upward price movement, which eroded the profitability of the short bet. The decision to close the position and re-enter with a larger stake suggests a shift in the trader’s outlook, possibly signaling a belief in ASTER’s continued upward trajectory or a hedging strategy to mitigate further losses .

The whale’s activities on Hyperliquid are part of a broader pattern of leveraged trading involving both long and short positions. On the same date, the trader held a 10x leveraged long position of $7.15 million in HYPE, Hyperliquid’s native token, while simultaneously shorting ASTER . This dual approach indicates a complex trading strategy that leverages market correlations and funding fee arbitrage. The short position on ASTER may have been used to hedge against potential losses in the long HYPE position, particularly given the positive funding rate of 450% annualized on Hyperliquid, which incentivizes short positions ^[4].

The ASTER token, launched by the decentralized exchange Aster, has gained attention for its multi-chain support and institutional-grade liquidity features. Backed by YZi Labs (formerly Binance Labs) and supported by CZ Binance, Aster aims to compete with platforms like Hyperliquid by offering privacy-focused tools such as hidden orders and yield-generating collateral Rewarding $ASTER Airdrop and Sept 17 TGE: CZ Spotlighted Project Challenges Hyperliquid^[1]. The token’s recent performance, including a 130% surge in its first six hours of trading, has attracted significant retail and institutional interest CZ Binance Backs Aster to Challenge Hyperliquid – Token Hits $300M MC in 6 Hours^[2]. However, the aggressive shorting activity on Hyperliquid highlights the risks associated with leveraged positions in a market characterized by rapid price swings.

Analysts suggest that the whale’s actions may reflect broader market dynamics. The short position’s closure and subsequent re-entry could indicate a strategic response to regulatory developments, such as the EU’s MiCA framework, which Aster is designed to navigate through its privacy-centric architecture. Additionally, the trader’s focus on ASTER aligns with growing competition between decentralized exchanges (DEXs) and centralized platforms, as projects like Aster emphasize regulatory compliance while maintaining high-performance trading features Rewarding $ASTER Airdrop and Sept 17 TGE: CZ Spotlighted Project Challenges Hyperliquid^[1].

The unrealized loss of $1.798 million underscores the volatility inherent in leveraged trading, particularly for tokens in early adoption phases. If ASTER continues its upward trend, the short position could face further liquidation risks, potentially amplifying the trader’s losses. Conversely, a reversal in ASTER’s price could validate the whale’s strategy, reducing the drawdown and stabilizing the position. The outcome will depend on factors such as Aster’s ecosystem growth, regulatory developments, and broader crypto market sentiment.