Bitcoin (BTC) whales gang up to liquidate a massive $430M short position

Notable Bitcoin (BTC) whales have grouped together to hunt down a massive $430 million short position on Hyperliquid (HYPE) this weekend. The account of a supposedly insider trader, self-proclaimed 'Tether FUD', is now Bitcoin's most famous target in the market.

In a weekend narrative that has unfolded, notable Bitcoin (BTC) whales have banded together in an effort to hunt down a massive $430 million short position on Hyperliquid (HYPE). The account of a supposedly insider trader, self-proclaimed ‘Tether FUD’, is now Bitcoin’s most famous target in the market.

As Finbold reported earlier today, data from Coinglass shows a 40x leverage with a nominal value of $431.26 million at current prices and an entry price of $83,914.

At the time of writing, this position is at $2.12 million profit, trading below the entry price. However, there is already near $380,000 of ongoing expenses with the funding fee and current liquidation at $86,077.

Bitcoin whales hunting down the ‘Tether FUD’ HL insider’s BTC short position

The scenario unfolds with an enigmatic trader, self-aliased as ‘Tether FUD’ and recognized as an HL insider, becoming the target of several Bitcoin whales. Among them, prominent trader Cbb0fe is leading the charge to liquidate this mysterious player.

Joining Cbb0fe in this tale of the crypto market, veteran investors Anniihoo and Dtf13 have also converged, pooling their resources as visible in talks on X. Moreover, Justin Sun, creator of Tron (TRX) has so shown interest in sending Bitcoin price upwards to hunt the short position.

GMCan't even chill on weekends, lol.A whale drops a $450M+ short on $BTC with a target of $69,420—his on-chain name? 'Tether FUD'.🤣After spotting his short on Hyperliquid, a group of whales tries to liquidate him… but fails.What does he know? 👀 pic.twitter.com/YHDjESaiY1— Ericonomics (@er_conomics) August 20, 2024

The narrative continues with these whales aiming to destabilize the insider’s position on the Hyperliquid platform.

Furthermore, speculation has mounted regarding the "Tether FUD" message and the true identity of the individual. Some suggest that the alias is a reference to an upcoming announcement about Tether’s USDT stablecoin.

Moreover, there are claims that the trader might be a former exchange employee, utilizing internal knowledge to manipulate markets. However, despite the speculation, no concrete evidence exists to support these assertions.

The choice of the alias 'Tether FUD' might be a deliberate nod to past controversies surrounding Tether's reserves and the FUD (fear, uncertainty, and doubt) factor in cryptocurrency.

In other developments, as the tale unfolds, the crypto market is keeping a close eye on the story, with several members of the community weighing in on X.

However, despite the interest, details about the insider’s strategy remain limited, leaving room for analysis and varied opinions among traders.

As the hunt for the ‘Tether FUD’ insider continues, the actions of the Bitcoin whales in trying to demask this figure are unfolding with an element of mystery.