A crypto whale who placed over 300 highly leveraged short positions on Bitcoin, worth $521 million, closed the trades on Tuesday, securing a $3.9 million profit.
Despite efforts from traders to push Bitcoin’s price above the whale’s liquidation level, the bet paid off.
The whale had wagered against Bitcoin at $83,898 with 40x leverage, risking liquidation if the price rose just 2% to $85,591.
Some traders attempted to force this scenario by injecting $10 million into Bitcoin, but the effort failed.
The whale closed the positions swiftly after Bitcoin dipped, selling 208.1 BTC in under two minutes.
While the profit was 30%, the risk was substantial, as the trader could have faced massive losses.
This same whale previously caused a $4 million loss for Hyperliquid’s liquidity provider with a leveraged Ethereum bet.
Following the incident, Hyperliquid reduced leverage limits on Bitcoin and Ethereum.
Now, the whale has opened a new $2.7 million long position on MELANIA, a Solana meme coin. Whether traders will attempt another price squeeze remains to be seen.
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