On-chain investigator ZachXBT has identified the notorious ‘Hyperliquid 50x leverage whale’ as merely a cybercriminal gambling with stolen funds.
The mysterious trader has captivated crypto Twitter for weeks with audacious high-leverage positions, recently closing a position with a remarkable $9 million profit despite coordinated efforts by crypto traders to force a liquidation.
Whale Keeps on Winning Despite Digital Manhunt
The whale has established a pattern of executing short-term leveraged trades with a flawless win rate, netting over $16 million in just one month by trading Bitcoin, Ethereum, and Hype with extreme leverage on Hyperliquid. The trader opened an Ethereum long position at 50x leverage, with an entry price of $1,884.4 and a liquidation point of $1,838.2, while also entering a Bitcoin long position at 20x leverage, with an entry price of $82,003.9.
In addition to the 50x short leveraged position on Ethereum, the whale opened a massive $31 million position with 10x leverage on Chainlink (LINK) and placed short bids on GMX.
The crypto community engaged in a digital manhunt for the trader who opened a short position worth approximately $450 million on Bitcoin. This intensified on Tuesday as traders banded together to liquidate the whale’s position through coordinated buying.
The “manhunt” group of traders led by a self-described “liquidity provider” named CBB made eight-figure purchases, driving the Bitcoin price to $84,690 in just a few hours.
Max Brown, a prominent influencer, reportedly purchased $500,000 worth of Bitcoin (6.07 BTC) as part of this collective effort, exemplifying the community’s action.
Despite their efforts, the whale showed resilience by depositing an additional $5 million USDC from Arbitrum to increase the margin and avoid liquidation. These actions foiled the attempt to liquidate the position, leaving the whale unscathed and profitable.
Criminal Whale Not Attached to Lazarus Group
While ZachXBT emphasized that the whale had no links to the North Korean-backed Lazarus Group, this situation raises concerns about stolen assets circulating via decentralized financial protocols.
Furthermore, it demonstrates how criminals can gamble with stolen funds using high-leverage trading, potentially undermining markets in the process.
READ MORE: Crypto Price Predictions: 3 Altcoins to Buy as US Recession Odds Rise
