Bitcoin Whale Reduces $114M Short Position to Avoid Liquidation on Hyperliquid

A trader using the wallet address 0xff84 on Hyperliquid, a decentralized perpetuals exchange, has taken steps to mitigate the risk of liquidation on a Bitcoin short position valued at approximately $114.4 million. Faced with a precarious situation due to 40x leverage, the trader closed about 250 BTC of the position, incurring a realized loss of around $33,400.

After this adjustment, the remaining short position stands at roughly 1,543 BTC, worth about $98.97 million. The original position peaked at approximately 1,793 BTC, with an average entry price between $63,999 and $64,000. Given the high leverage, even a minor price increase of 2.5% could have resulted in a total loss of margin.

As Bitcoin's price has recently increased, the liquidation threshold has risen to around $64,225, leaving a narrow margin of only $225 from the entry price. On-chain analytics firms, including Lookonchain and Hyperbot, noted the trader's activity as they trimmed their position to gain some breathing room. This partial closure adjusted the liquidation price, providing the remaining short position with slightly more leeway before facing involuntary closure.

The wallet first appeared in early August 2026, initially funded with approximately 2.44 million USDC. The trader has actively managed their position, adjusting size based on market conditions and funding rate changes.

When large short positions are liquidated, the exchange's liquidation engine buys Bitcoin to close these positions, which can lead to increased buying pressure and potentially trigger further liquidations. The remaining short from this wallet could contribute significantly to such a cascade if Bitcoin's price continues to rise above the liquidation level.

Despite the $33,400 loss from the partial closure being relatively minor compared to the overall position size, it reflects a broader trend where even large traders are taking defensive measures as Bitcoin's price trends upward.