XRP News Today: XRP surge triggers $650,000 loss for whale’s 20x short on Hyperliquid

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Monday, Aug 4, 2025 11:16 pm ET1min read
Aime RobotAime Summary

- A crypto whale @qwatio suffered $650K losses after a 20x short on XRP was crushed by its price surge past $3.

- Aggressive 40x BTC, 25x ETH, and 20x SOL shorts further amplified losses to $18.6M as major tokens moved against positions.

- The account plummeted from $16.3M to $67K in weeks, following prior $10M and $334M losses in June and July.

- Speculation arose about potential insider knowledge after the trader’s 50x longs on BTC/ETH predated alleged U.S. crypto reserve announcements.

- The incident highlights extreme risks of over-leveraging in volatile crypto markets, where small price swings can trigger catastrophic losses.

A high-leverage short position on XRP has led to massive losses for a prominent crypto whale on Hyperliquid, as the token surged past $3. The trader, identified as @qwatio on X, had opened a 20x short on XRP at $2.894, anticipating a bearish movement. However, the price rally crushed the trade, causing over $650,000 in losses and triggering a partial liquidation [1].

This was not an isolated incident. The trader had also taken aggressive short positions on Bitcoin (BTC) with 40x leverage, Ethereum (ETH) with 25x, and Solana (SOL) with 20x. With all these major tokens moving against the whale’s positions, the total losses from failed trades reached approximately $18.6 million [1]. The trader’s account saw a dramatic decline, dropping from $16.3 million in July to just $67,000 in a matter of weeks due to repeated liquidations [1].

The whale’s history of high-leverage trading is not new. In June, the trader lost $10 million in three days of consecutive liquidations, and in July, the losses expanded further as $334 million in short positions were wiped out. These repeated setbacks highlight the extreme volatility and risk associated with leveraged trading in crypto markets [1].

Earlier this year, the same trader had also taken aggressive long positions on BTC and ETH with 50x leverage, reportedly before the public announcement of tokens allegedly to be included in a U.S. strategic crypto reserve. While no formal allegations of insider knowledge have been made, the timing of the trades has fueled speculation [1].

The event underscores the dangers of over-leveraging in a highly volatile asset class. When a trader takes aggressive positions on multiple assets with high leverage, even small price movements can lead to catastrophic losses. The incident with @qwatio serves as a cautionary example for other traders considering similar strategies [1].

Source: [1] https://cryptofrontnews.com/xrp-rally-crushes-whales-high-leverage-bet-on-hyperliquid/

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