Strategy's opposing whale BTC short positions turn profitable in two days, from a loss of 3.3 million to a profit of 2.1 million behind the scenes

A rapid price decline caused a “short whale” on Hyperliquid to reverse its position within two days. According to the latest news, this whale identified by address 0x94d37 has turned its BTC short position from an unrealized loss of $3.3 million on January 6 to an unrealized profit of $2.1 million on January 8. This not only reflects the swift volatility of Bitcoin prices but also highlights the complexity of hedging strategies and risk management in the current market.

Details of the Whale’s Short Position Turnaround

Based on Hyperinsight monitoring data, this whale’s current holdings are quite substantial:

• Short 1599.61 BTC with 10x leverage (approximately $144 million exposure)
• Average entry price of $91,331.6
• Current unrealized profit of $2.1 million
• Simultaneously shorting 6 altcoins with high leverage, all in profit

This indicates that the whale took profits as BTC price fell from the entry point of $91,331.6 to the current $90,119.85. Although the decline appears modest (about 1.3%), the 10x leverage amplified the gains significantly.

Position Changes Over Two Days

Market Context and Price Trends

This shift occurred amid a generally weakening Bitcoin market. Currently, BTC is priced at $90,119.85, down 2.10% in the past 24 hours but up 2.65% over the past 7 days. While the weekly trend remains bullish, the daily downward pressure is evident.

More importantly, MicroStrategy, the world’s largest corporate Bitcoin holder, is under market pressure. Reports indicate that MicroStrategy holds 673,783 BTC, but its stock price has fallen approximately 47.5% in 2025, with a quarterly loss of up to $17.44 billion. This stock price pressure and skepticism about its Bitcoin strategy may also influence overall market sentiment, contributing to the decline in BTC price.

Risks and Opportunities Behind High Leverage Operations

The Cost of Gains

This whale’s strategy exemplifies high-risk, high-reward trading. With 10x leverage:

• A 1.3% price decline can yield a 13% return
• Conversely, a 1.3% increase results in a 13% loss
• In extreme cases, if the price rebounds above the entry point, liquidation risk arises

From an unrealized loss of $3.3 million on January 6 to an unrealized profit of $2.1 million today, the $5.4 million turnaround vividly demonstrates the magnifying effect of high leverage.

Market Hedging Insights

This whale is short BTC and multiple altcoins simultaneously, reflecting a current market view: Bitcoin and the broader crypto market may face short-term correction pressures. This sentiment aligns with the market mood driven by MicroStrategy’s stock pressure.

Personal Perspective

From a market structure standpoint, the emergence and profitability of such large short positions often indicate increasing divergence among market participants regarding price direction. On one side, long-term holders like MicroStrategy continue accumulating spot positions; on the other, high-leverage shorts seek short-term gains. This hedging activity essentially reflects the market digesting various uncertainties—such as MicroStrategy’s stock pressure, Bitcoin valuation debates, macroeconomic shifts, and more.

Summary

The process of this whale’s short position turning from unrealized loss to unrealized profit fundamentally reflects two key phenomena: first, the rapid short-term volatility of BTC prices; second, the active presence of high-leverage hedging strategies in the market. While a $2.1 million profit on a $144 million exposure isn’t huge, it demonstrates that even in the current environment, shorts can profit. However, the risks of such high-leverage operations always exist—if prices move against the position, gains can quickly turn into losses. For ordinary investors, this serves more as a window into market sentiment and risk appetite rather than a direct trading signal.