The crypto community is following one interesting incident where one whale sparked a liquidation hunt by other whales. The public hunt came after the whale placed a high-leverage short position on BTC with a tight liquidation price. This move grabbed the attention of other market participants who then decided to teach the whale a lesson by starting the public hunt.
While some might see it as just another saga in the crypto space, the crypto space has celebrated the move as it demonstrates the future of decentralization. Traceability of trading activities is key to prevent moves that are aimed at manipulating the market. While engaging in crypto trading is autonomous, the market has been having discussions about potential market manipulation with some previous trades happening in almost near perfect timings.
Hunt Down Aimed at Liquidating the $423M High-Leverage Trade
As shared on X by Lookonchain, an on-chain data tracking platform, a crypto whale with wallet address 0xf3…057c shorted Bitcoin in a trade worth $424 million. The trader entered this trade at $83,109 and made a 40x leverage. Additionally, the trader set up a tight range with the liquidation price set at $85,940.
Following his recent successful high-leverage trades, other market participants raised suspicions about his trades which triggered a liquidation hunt. Angered by the move, CBB (bera era) took to X to seek support from other whales in an attempt to liquidate this whale by pushing the price of BTC higher.
“If you are willing to hunt this dude with size, drop a DM, setting up a team right now and already got good size,” CBB wrote on X. The user further confirmed that other whales had already committed 8 figures (million of dollars) for the hunt. “We already have 8 figs committed,” CBB further added.
Another post by CBB claimed that Justin Sun was one of the members of ‘whale hunt’ group. However, Sun has yet to confirm his involvement in the matter publicly. With the whales pushing the price of BTC to $84,690 in a short span, the whale was forced to “deposit $5M USDC to increase margin and avoid liquidation.”
Trader Not Liquidated Yet Despite Huge ‘Hunt’ Efforts
Bitcoin currently holds at $83,117.57 which is 3% from touching the trader’s liquidation level. With BTC’s 1% market depth requiring $300 million, it is difficult for the whale-hunters to push the price of BTC in order to liquidate the whale. Furthermore, Lookonchain confirmed that “the hunt ultimately failed” and that the whale was making a profit despite the hunt by the CBB-led team.
As of the time of reporting by Lookonchain, the trader’s position had an unrealized profit of $4.4 million with the position sitting at 5,406 $BTC (worth $449 million). The on-chain data tracker further revealed that the trader was taking profits through Time-Weighted Average Price (TWAP).
Hyperliquid Praises Public Trading Transparency After the Incident
With the unfolding of this event that gained attention amongst crypto fans, Hyperliquid has praised the transparency of public trading on its platform. The platform boasted “redefined trading” stating that “when a whale shorts $450M+ BTC and wants a public audience, it’s only possible on Hyperliquid.”
Hyperliquid further celebrated decentralization. “No one can question a Hyperliquid position, just like no one can question a Bitcoin balance,” the X post read. “The decentralized future is here,” Hyperliquid added. The crypto community will continue to monitor the development of the whale-hunt for further updates.
#blockchain #crypto, #decentralized, #distributed, #ledger
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