【A whale made $353 million—I don’t even have that many Happy Beans】
On October 26, Abraxas Capital’s two accounts on Hyperliquid had racked up combined profits of more than $353 million, while still holding short positions worth about $1.29 billion. Those numbers are staggering, but don’t rush to follow the shorts: the notional value of a short position isn’t the same as the amount of capital actually put in, and cumulative profits don’t mean every position in the portfolio is profitable.
The firm had previously been tracked shorting ETH while buying spot to hedge. In August, it withdrew about $173 million $ETH from Binance, suggesting it may be running a long-short strategy.
Market conditions are indeed weak: $BTC has fallen back toward $80,000, and on October 23, U.S. spot BTC ETFs saw net outflows of about $636 million in a single day. The selling pressure is real.
Next, it’s worth watching whether Abraxas continues adding to its shorts while reducing its spot holdings, and whether it takes profits on its shorts as prices fall. If BTC stabilizes and the short positions start getting covered aggressively, this “smart money” trade could also become fuel for the bulls.
On October 26, Abraxas Capital’s two accounts on Hyperliquid had racked up combined profits of more than $353 million, while still holding short positions worth about $1.29 billion. Those numbers are staggering, but don’t rush to follow the shorts: the notional value of a short position isn’t the same as the amount of capital actually put in, and cumulative profits don’t mean every position in the portfolio is profitable.
The firm had previously been tracked shorting ETH while buying spot to hedge. In August, it withdrew about $173 million $ETH from Binance, suggesting it may be running a long-short strategy.
Market conditions are indeed weak: $BTC has fallen back toward $80,000, and on October 23, U.S. spot BTC ETFs saw net outflows of about $636 million in a single day. The selling pressure is real.
Next, it’s worth watching whether Abraxas continues adding to its shorts while reducing its spot holdings, and whether it takes profits on its shorts as prices fall. If BTC stabilizes and the short positions start getting covered aggressively, this “smart money” trade could also become fuel for the bulls.