A Crypto Whale Closed 300 Short Positions on Bitcoin, Securing a $3.9 Million Profit

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.

A crypto whale who placed over 300 highly leveraged short positions on Bitcoin, at an aggregate notional value of $521 million, closed the trades on Tuesday, realizing a profit of $3.9 million.

The trader had taken 40x leverage on put positions against Bitcoin at $83,898, which would have been liquidated if the price rose 2% to $85,591.

However, some traders tried to help the crypto reach the liquidation level.

After Bitcoin dipped, the whale closed the positions in two minutes at 12:52 PM.

The positions were closed at an average price of $82,558, and the trader sold 208.1 BTC.

The total profit from the 339 closed positions was $3,894,426. Despite a 30% profit, the trader took a risk of $420 million.

Earlier, traders on Benbi attempted to rally Bitcoin to $85,591, warning that the move would liquidate a large short at that level.

One trader said they would inject $10 million into Bitcoin to help reach the price.

However, another trader said the effort would fail as it would require at least $500 million to move Bitcoin from the $83,000 level.

At the time, traders were trying to push the crypto up from $83,271.

Earlier this month, the same crypto whale lost $4 million to Hyperliquid’s liquidity provider with a leveraged Ethereum bet, which went sour.

Following the incident, Hyperliquid decreased the leverage limits on Bitcoin and Ethereum.

Now, the whale has opened a new position for 2,000,000 MELANIA, a Solana meme coin, valued at $2.7 million. It remains to be seen whether traders will attempt another price squeeze.