{"id":125272,"date":"2025-03-18T02:15:38","date_gmt":"2025-03-18T02:15:38","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125272"},"modified":"2025-03-18T02:15:38","modified_gmt":"2025-03-18T02:15:38","slug":"hyperliquid-opened-doors-to-democratized-crypto-whale-hunting-analyst","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125272","title":{"rendered":"Hyperliquid opened doors to \u2018democratized\u2019 crypto whale hunting: Analyst"},"content":{"rendered":"

Source: Cointelegraph.com NewsCrypto whale tracking on the Hyperliquid blockchain has enabled traders to target whales with prominent leveraged positions in a \u201cdemocratized\u201d attempt to liquidate them, according to the head of 10x Research.
\nHyperliquid, a blockchain network specializing in trading, allows traders to publicly observe what type of positions a whale is holding, and since these positions are leveraged, the market can assess the liquidation levels unless an additional margin is added, Markus Thielen said in a March 17 report.
\nSource: 10x Research\u201cThis transparency opens the door for coordinated efforts, where groups of traders could intentionally target these stop levels to trigger liquidations,\u201d he said.\u00a0
\nIt\u2019s a common belief in the crypto market that whales with substantial holdings can influence the market through their trading tactics, such as stop-loss hunting, to deliberately trigger other traders\u2019 stop-loss orders and liquidate their positions.\u00a0
\nThielen says the recent actions from traders show this balance of power could be shifting.
\n\u201cIn effect, stop-hunting is being \u2018democratized,\u2019 with ad-hoc groups now playing a role once reserved mainly for market-making desks, or treasury teams, at exchanges before tighter regulatory scrutiny,\u201d Thielen added.\u00a0
\nThielen told Cointelegraph that it\u2019s still \u201cunclear if this type of activity will become widespread onchain, but as always, transparency can cut both ways.\u201d\u00a0
\nWhy are traders trying to liquidate whales?
\nThis isn\u2019t the first time smaller traders have attempted to take down larger entities through coordinated trading tactics.\u00a0
\nThielen says crypto traders trying to liquidate whales have echoes of the GameStop short squeeze, which saw small traders flip the table on Wall Street short-sellers by buying GameStop\u2019s stock, sending it to all-time highs of over $81 to liquid their positions.\u00a0
\n\u201cThis reminds me of the dynamics we saw during the GameStop saga in 2020\/2021, where aggressive short squeezes drove rapid price spikes,\u201d he said.\u00a0
\nRelated: Bybit CEO on \u2018brutal\u2019 $4M Hyperliquid loss: Lower leverage as positions grow
\n\u201cWhen stop levels get triggered, prices often accelerate in that direction, providing liquidity for others to cover. We\u2019ve seen similar tactics from market makers and exchanges in the crypto space over the years.\u201d\u00a0
\nHunt is still on for 40x leveraged Bitcoin short-seller
\nOn March 16, a crypto whale known for placing large, highly leveraged positions on Hyperliquid opened a 40x leveraged short position at $84,043 for over 4,442 Bitcoin (BTC), worth over $368 million on March 16, facing liquidation if Bitcoin\u2019s price surpassed $85,592.
\nThe move didn\u2019t go unnoticed, and pseudonymous trader CBB sent out the call on X to gather a team of traders with enough funds to liquidate the whale\u2019s position.\u00a0
\nSource: CBBThielen said in the 10x report that on March 16, Bitcoin surged by 2.5% within minutes, partly because of a coordinated effort to liquidate a whale\u2019s short position on Bitcoin perpetual via Hyperliquid.
\nThe whale has since increased their position to $524 million, and at one point, the whale hunters nearly got their wish when the price of Bitcoin hit $84,583.84, according to CoinGecko.\u00a0
\nSource: CRGHowever, some speculate the exposed short position could be intentional.\u00a0
\nHedge fund trader Josh Man said in a March 17 post to X that the whale might be purposefully trying to get liquidated.\u00a0
\n\u201cSo this there is a fairly rare and not widely used technique of self-liquidation and this FEELS a little like that,\u201d he said.\u00a0
\n\u201cIn such events, the seller is actually creating a bomb designed to go off and create a rally from the liquidation of his own short. One would expect that he has a large offsetting long versus short.\u201d\u00a0
\nSource: Josh ManMagazine: Crypto fans are obsessed with longevity and biohacking: Here\u2019s whyRead More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsCrypto whale tracking on the Hyperliquid blockchain has enabled traders to target whales with prominent leveraged positions in a \u201cdemocratized\u201d attempt to liquidate them, according to the head… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125272"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125272"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125272\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125272"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}