$ETH Whale Scrambles to Avoid Liquidation on
$ETH Short
A whale wallet “0x8c5” has deposited an additional $4M USDC into
#HyperLiqui in an attempt to raise the liquidation threshold on its highly leveraged 20x short position in ETH. Despite this emergency move, the position remains in deep trouble, with the whale facing $14M in unrealized losses and sitting on an overall drawdown of $26M.
This situation highlights the risks of extreme leverage in volatile markets. Even whales with significant capital reserves can find themselves cornered when momentum shifts against their trades. By adding collateral, “0x8c5” has temporarily delayed liquidation, but if ETH continues climbing, the pressure could intensify, forcing either further top-ups or a full capitulation.
More broadly, whale behavior on platforms like HyperLiquid is often seen as a proxy for institutional sentiment. The fact that this trader is holding on, rather than closing the short, suggests conviction that ETH may face a correction — but it also illustrates the psychological trap of sunk costs that can escalate losses.
💭 What’s your take — is this whale just buying time before an inevitable liquidation, or do you see ETH momentum cooling enough to save the trade?
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