Massive Short Selling Strategy: Trader Bets $261 Million on Four Currencies' Decline

Recent blockchain analytics revealed a massive short-selling operation carried out by a professional trader in recent times, turning an initial investment of $3 million into $11 million through a series of strategic short positions across multiple cryptocurrencies.

Professional Trader Intensifies Bearish Bets

According to analysis by specialist Yu Jin, reported by Odaily, the trader with the address 0xD83…Fd7 has been gradually expanding his short activity. The strategy began last week when the trader opened his first short position on Ethereum, then used unrealized profits to expand his portfolio into other coins. Currently, the trader holds short positions on four major cryptocurrencies, totaling approximately $261 million.

Position Breakdown: BTC and ETH Profit, HYPE Under Pressure

Analysis of the short positions shows the trader is investing wisely:

Bitcoin Position: Shorted 1,640 BTC worth $150 million, with an entry price of $92,120. The current unrealized profit stands at about $1.98 million, reflecting the trader’s expectation of a price decline from those levels.

Ethereum Position: The largest by volume, with 31,093 ETH sold for $100 million at an entry price of $3,270. Unrealized gains are approximately $6.29 million, indicating strong performance for this position.

HYPE Position: The most volatile, with 728,000 units sold for $16 million at an entry price of $21.77. This position is currently showing an unrealized loss of around $60,000, signaling a move against the trader’s expectations.

XMR Position: A smaller holding of 824 Monero units valued at $450,000, with an unrealized profit of $40,000.

Risks and Opportunities: Narrow Liquidation Margins

Analysis indicates limited safety margins in some positions, especially for Bitcoin and Ethereum. The Bitcoin liquidation price is at $94,732, while Ethereum’s is at $3,269—both close to their entry prices. This means any sudden price spike could trigger forced liquidations.

This behavior reflects a bold short-selling strategy betting on continued downward pressure in the market. With total risk capital of $261 million, these positions make the trader a significant player in current markets. Potential losses on the HYPE position suggest that even calculated strategies can face challenges amid unexpected market movements.