As the weekend unfolded, a group of influential Bitcoin (BTC) investors launched an offensive against a large $430 million short position on the decentralized exchange (DEX) Hyperliquid (HYPE). This position was reportedly held by a supposed ‘inside trader’, who took on the moniker ‘Tether FUD’, making them a prime subject of interest in the cryptocurrency market.

Bitcoin Whales Target Large Short Position on Hyperliquid

Hyperliquid serves as a decentralized exchange platform, offering both spot and perpetual markets to its users. Thanks to its public and permissionless order book, traders have the ability to make bids (buy orders) and puts (sell orders). In addition to this, the platform allows users to open leveraged long and short positions and even monitor other traders’ open interest in real time.

The individual who has caught the attention of the Bitcoin whales holds the wallet address ‘0xf3f496c9486be5924a93d67e98298733bb47057c’. They have changed their alias to ‘Tether FUD’, according to Ericonomic. Data procured from Coinglass suggests that this individual leveraged at an astounding 40x, amounting to a nominal value of $431.26 million.

At the current market prices, this position is profiting to the tune of $2.12 million due to trading below the $83,914 entry price. However, one cannot overlook the near $380,000 of ongoing costs, a result of the funding fee and current liquidation at $86,077.

Whale Hunt for ‘Tether FUD’ Short Position

A group of Bitcoin whales, guided by the renowned trader Cbb0fe, are making a concerted effort to liquidate this anonymous trader. Pivotal investors such as Anniihoo and Dtf13 have also joined Cbb0fe’s pursuit, according to discussions on X. Intriguingly, Justin Sun, the creator of Tron (TRX), has also expressed interest in pushing up the Bitcoin price to liquidate the ‘Tether FUD’ short position.

Publicly available data indicates that these Bitcoin whales are intending to disrupt the mysterious trader’s position on Hyperliquid. Many questions have been raised about the intention behind the ‘Tether FUD’ alias and the role of the alleged ‘HL insider’.

While some suggest that ‘Tether FUD’ may be privy to undisclosed information about the stability of Tether’s USDT stablecoin, others theorize that he was a former exchange worker using inside information to his advantage. However, no substantial evidence supports these theories. The chosen alias instead seems to be a subtle nod to previous controversies involving Tether’s reserves.

Despite this, the cryptocurrency community is keenly observing the buoyant efforts of the Bitcoin whales against ‘Tether FUD’. Public discussion platforms reflect this growing curiosity about the identity and strategy of ‘Tether FUD’.

However, details are limited and open to conjecture among market analysts and traders. For now, the hunt marches on, driven by the commitment of the Bitcoin whales to unmask this enigmatic trader.

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This detailed guide to the recent whale hunt on Hyperliquid provides an insightful look into its broader context, the players involved, and its potential implications. The following FAQs provide more detailed information to help readers understand the situation better.

What is a Bitcoin Whale?

Bitcoin whales are large-scale Bitcoin traders that hold a substantial amount of cryptocurrency. Their trading activity can significantly influence the market due to the sheer size of their transactions.

What is a short position in trading?

Shorting, or taking a short position, means selling assets that you do not own with the intention of buying them back at a lower price in the future. It’s a strategy used to profit from the expected price decline of a particular asset.

What is a decentralized exchange (DEX)?

A decentralized exchange (DEX) is a platform that allows peer-to-peer trading of cryptocurrencies. In contrast to centralized exchanges, DEX’s operate without an intermediary and help to maintain the ethos of decentralization inherent in cryptocurrencies.

What is leverage in cryptocurrency trading?

Leverage in cryptocurrency trading enables traders to borrow funds to increase their position size and potential returns. However, it also increases the potential losses and risks, making it a risky strategy, particularly in highly volatile markets like cryptocurrencies.

Note: In this guide, all instances of “CoinGabbar” have been replaced with “Finances Zippy” to maintain brand integrity. Also, any unnecessary or invalid symbols have been removed for a clean and error-free reading experience.