The Hyperliquid trader who previously forced rule changes on the platform is back with a massive Bitcoin short

According to Simononchain via X, a wallet linked to the trader wth the tag “0xf3f4…057c” has placed a huge $333.9 million short bet on Bitcoin using 40x leverage.

The Hyperliquid trader, who previously forced platform rule changes due to a massive leveraged position, is back with a huge Bitcoin short.

According to Simononchain via X, the trader's wallet, tagged as "0xf3f4...057c," has placed a $333.9 million short bet on Bitcoin with 40x leverage. They entered at $84,040.80, and since Bitcoin is now trading at $84,294, they're already down $1 million in unrealized losses.

This is the same trader who recently executed a high-risk 50x ETH long position with just $4.3 million in margin, which was previously highlighted.

They made a smart move by withdrawing funds strategically, which triggered an auto-liquidation event, leaving Hyperliquid's HLP Vault with a $4 million loss and the trader with a $1.8 million profit.

After that, a lot of users thought that the platform was hacked, but Hyperliquid confirmed that “There was no hack or exploit involved.”

So, to stop this from happening again, the platform updated its margin rules. They introduced a 20% margin requirement and reduced leverage limits to 40x for Bitcoin and 25x for Ethereum.

Now, the same trader is back, and they are trying out those new rules with another big investment. They have placed a 20% margin of $67.8 million on this short position, which aligns with the platform's new requirements.

Currently, the trader is at risk. Their margin usage is at 111%, meaning they are extremely close to losing all their money. Should the price of Bitcoin move against them, they would lose their position in no time.

Moreover, a trade like this, considering its big scale, does not only affect the trader but the whole market if things end up badly.

Hyperliquid's HLP Vault has around $450 million locked up, so the $4 million loss last time was just a setback. But with this new short, the stakes are even greater.