I just looked at an on-chain address—it was pretty interesting. A wallet bought a large amount of LINK yesterday, but on closer inspection, it also opened a sizable short position on another protocol at the same time. This is clearly not just opening a position; it’s doing hedging or targeted offsetting. A lot of people see a whale buying and rush to follow, and the result is often getting counterattacked by this kind of operation.

Before a recent hard fork on a certain blockchain, there were similar situations too—people said whales were buying up the ecosystem tokens at the bottom. In reality, many addresses were taking advantage of the moment to trade volatility in both directions: buying spot while simultaneously opening short positions. In plain terms, the opening and the hedging are both written on-chain, but the watchers might not be able to read what it really means.

Anyway, my current habit is: when I see a large amount transferred into a wallet or exchange, I first ask myself whether it’s a genuine setup or a temporary risk transfer. Before copying, I make sure whether the other party is chasing the light or casting shadows. If you don’t figure that out, even signals from the leaders can still be used to mess with you.

Honestly, after seeing this kind of playbook so many times, I feel like “wait and see” is safer than “rush in immediately.”