Expert: Hyperliquid Enables Peoples Whale Hunting Through Enhanced Transparency

The transparency of Hyperliquid has enabled a collective effort to target whales using leverage in order to liquidate their positions, as noted by 10x Research.

Experts believe this initiative could spark a new trend.

Hyperliquid’s monitoring feature allows public observation of whale activities for analyzing the liquidation levels of their positions.

Such transparency creates opportunities for coordinated actions among groups of traders, who may intentionally aim for their stop-loss levels.

10x Research sees recent events as a potential shift in the power dynamics between different categories of platform users, although the extent of this phenomenon still needs to be evaluated, the analysts added.

Specialists drew parallels with the confrontation between the WallStreetBets community on Reddit and the hedge funds during the GameStop stock surge.

The commentary from 10x Research was prompted by a suggestion from user CBB to collaboratively liquidate a whale.

This refers to a player who opened a short position of 4,442 BTC on March 16 with 40x leverage at a price of $84,043, setting a liquidation level at $85,592.

According to analyst observations, the call was heard—within minutes, Bitcoin rose by 2.5%, aided by those who responded to CBB’s message.

To avoid a negative scenario, the whale increased their position to 6,210 BTC (approximately $524 million).

On March 18, the major player closed the short position, securing a profit of about $7.9 million.

The spot market prices did not reach the liquidation point of $85,556.99.

CryptoQuant highlighted the significant role of whales in the current market cycle. Analysts discovered an «unprecedented accumulation» of coins by addresses holding at least 1,000 BTC for over six months.

Experts believe this situation reflects strong confidence from large players in the long-term prospects of the asset.

Since November 2024, these wallets have collectively acquired more than 1 million BTC. In recent weeks, the accumulation pace has notably increased, with more than 200,000 BTC added in March alone.

CryptoQuant views this trend as indicative of growing participation from institutional investors and high-net-worth individuals.

Previously, analysts reported an increase in the share of coins held for three to six months, indicating an accumulation trend characteristic of prolonged downturns in the summer of 2024.

It is worth noting that Matrixport has predicted the end of the correction for the leading cryptocurrency in March-April. Glassnode has mentioned that the phase of asset redistribution may extend further.