New Wallet Opens $40 Million Short Position on Bitcoin and Ethereum with 20x Leverage

A newly created wallet opened positions totaling approximately $39.82 million that will profit if Bitcoin and Ethereum prices drop, using $5 million in USDC as collateral. The 20x leverage on the trade means carrying a position significantly larger than the collateral.

According to an August 27 post by Lookonchain, the wallet first deposited 5 million USDC into Hyperliquid. It then took short positions worth approximately $20.33 million for 8,155 ETH and approximately $19.49 million for 247.6 BTC.

These types of downward-betting trades are called short positions. If the price rises, the position incurs losses; due to the 20x leverage used, even a limited adverse movement can rapidly increase losses.

Bitcoin and Ethereum Positions Total $39.82 Million

The total size of the two trades is approximately $39.82 million. This figure is not the same as the collateral deposited into the wallet. The notional value represents the total amount controlled by the positions.

In the shared trade screenshot, the Ethereum position showed a loss of $369,132, while the Bitcoin position was down $169,030 at that time. Liquidation levels were set at $2,951.57 for Ethereum and $93,920.14 for Bitcoin. Liquidation means the forced closing of a position when losses reach a certain level. These profit/loss and liquidation figures reflect the status at the time the screenshot was taken.

The identity of the wallet owner and the final outcome of the positions remain unknown.