After a quick turnaround from a $3.4 million unrealized loss, why did the whale pension-usdt.eth close a $63 million short position within 4 days?

Wave trading whale pension-usdt.eth quickly closed a $63 million position on January 8 after unwinding an ETH short. The entire process from opening to full exit took only 4 days, during which the position went from a floating loss of $3.4 million to a complete turnaround. This whale is known for low leverage, short-term swing trading strategies, with cumulative profits exceeding $21 million since October.

The 4-Day Trading Journey from Floating Loss to Unwinding

Position Building and Risk Management

pension-usdt.eth opened this 3x leveraged ETH short on January 4, with a position size of approximately $63.5 million, entry price at $3,136, and liquidation price at $4,547. This setup reflects the whale’s risk management logic: even if the market moves against the position, it would only be liquidated if the price rises from the entry to the liquidation level (about 44.8% increase).

Peak Floating Loss and Holding Strategy

According to relevant information, this short position experienced a peak floating loss of about $3.4 million during its holding period. Specifically:

• January 6: floating loss of $1.6 million (when ETH dropped below $3,200)
• Early January 8: still floating loss but beginning to reduce the position
• One hour before closing on January 8: fully closed

The whale chose to hold through the deepest floating loss rather than stop out, demonstrating market judgment and precise risk control.

Characteristics of the Whale’s Trading Strategy

Advantages of Low Leverage and Short Cycles

This address’s swing trading strategy has three clear features:

• Low Leverage Operation: 3x leverage is relatively conservative, allowing ample room for maneuver
• Short Holding Period: Average holding time around 23 hours, quick in and out
• Focus on Mainstream Coins: Mainly trading BTC and ETH with sufficient liquidity

The advantage of this approach is that even if a single trade incurs a floating loss, the relatively low leverage and short holding period give the whale enough time to wait for a market reversal without facing long-term holding risks.

Historical Profitability Validation

From available information, pension-usdt.eth has accumulated profits of over $21 million since October. This indicates that this swing trading strategy is effective in practice, not just a lucky gamble.

Market Signals Behind the Closing Decision

Discipline of Taking Profits Promptly

After unwinding the position, the whale quickly closed rather than holding for larger gains. This reflects the discipline of professional traders: once the profit target is reached, they exit immediately and do not chase greed.

New Direction of Capital Flows

According to reports, this address has recently been transferring profits accumulated on Hyperliquid into yield-bearing markets, with a total lending amount on AAVE reaching about $26.7 million. This suggests the whale is adjusting its strategy, shifting from high-risk leveraged trading to more stable yield-generating investments.

Summary

pension-usdt.eth’s trade fully demonstrates the risk management capabilities of professional swing traders: setting low leverage to leave room for maneuver, remaining calm during floating losses rather than rushing to stop out, and quickly exiting after unwinding the position. This discipline and patience form the foundation of its $21 million in accumulated profits. From a broader perspective, the whale’s move to shift profits into yield markets may also reflect some professional traders’ strategic adjustments in the current market environment.