As $BTC has surged above 87,000, the short positions of the top three H-L ranked shorts combined are already showing an unrealized loss of more than $70 million.
But after taking a closer look at the position structure, at least half of them are hedged positions for basis/derivatives arbitrage. Most likely, they’re holding spot, and opening short positions is simply to collect the high funding fees over the past few days—so there’s really no need to worry about being liquidated.
However, there are a few that are indeed pure shorts with no protection on the side. If the broader market continues to push higher again, it will be another round of fuel being delivered to the longs.
But after taking a closer look at the position structure, at least half of them are hedged positions for basis/derivatives arbitrage. Most likely, they’re holding spot, and opening short positions is simply to collect the high funding fees over the past few days—so there’s really no need to worry about being liquidated.
However, there are a few that are indeed pure shorts with no protection on the side. If the broader market continues to push higher again, it will be another round of fuel being delivered to the longs.