Recently, on-chain data revealed an interesting phenomenon — a top address has shorted 3.81 million LIT on Hyperliquid, worth approximately $10.17 million, with an average entry price of $2.7 and a liquidation level set around $5. This not only makes it the largest short position on the LIT chain but also one of the few macro short strategies that has remained profitable recently.

Why pay attention to this data? Because this address is also holding short positions in multiple tokens like HYPE, ASTER, and others, and continues to profit — indicating that the trader behind it has a solid risk control level, and their timing is not just luck. They are not the type to casually dump the market.

LIT’s situation is a bit delicate. If the price rebounds close to the $5 liquidation zone, it could trigger chain reactions. But what is the reality? In the short term, bearish sentiment is still fermenting, market liquidity is tightening, and downward pressure far exceeds the reasons for blind optimism.

What does this mean for traders? Don’t take reverse positions against whale holdings — that’s the most basic survival rule. Two weeks ago, the community warned about unusual movements of whales in altcoins at high levels, and now the data has validated that logic — the bear market mindset has not yet left the stage.

One last point: true on-chain actions always precede market sentiment. At this moment, it’s better to miss a rebound than to stand against the whales.