- A Hyperliquid wallet known as “pension-usdt.eth” was forced to unwind a 50,000 ETH short as Ether rallied sharply, with the position closed through five liquidation orders that added further upward pressure to the market.
- The wallet had held the bearish Ether position for more than two months before Thursday’s broad crypto surge triggered its liquidation, resulting in a loss of nearly $24 million.
- Prior to the reversal, the address had been among the more successful crypto short sellers this year, generating roughly $49 million in profits from bets against digital assets.
- Its previous profitable trades included nearly $6 million from a 60,000 ETH short closed in June, $3.6 million from a 1,400 BTC short during the same month and another $1.7 million from a Bitcoin short in March.
- The latest loss erased roughly half of the profits accumulated from those earlier trades. Hyperliquid data shows the entire liquidation process lasted only 12 seconds, from 04:51:03 to 04:51:15.
- The first forced sale involved 9,989 ETH at $2,193, followed by 20,698 ETH at $2,209, 15,830 ETH at $2,214 and 1,871 ETH at $2,236.
- The final 1,417 ETH could not be matched with buyers, so Hyperliquid absorbed the remaining position through its liquidity fund.
- Ether gained $43 during those 12 seconds. The trader’s forced buying contributed to the upward move, with each rise in ETH’s price making it increasingly costly to close the remaining short.
- The position had been open for 1,445 hours, equivalent to slightly more than two months, during a period when Bitcoin generally remained below $65,000 and bearish positioning appeared relatively comfortable.
- That environment changed following Wednesday’s announcement that the US Treasury would expand its bond-buyback operations. Ether then jumped 18% in 24 hours, while Bitcoin surged from around $64,000 to nearly $70,000.
- Hyperliquid’s leaderboard lists the account under the display name “Penision Fund.” The wallet was left with just $35.61 and had fallen 100% over the previous 30 days, posting $16.48 million in losses against $111.76 million in trading volume.
- The wallet was not the biggest victim of the broader rally, however. A $48.8 million Bitcoin position on Hyperliquid suffered the largest single liquidation.
- Overall, crypto short liquidations reached about $2.74 billion over 24 hours, representing the biggest forced short-covering wave in records dating back to 2021.
$49M Crypto Short Winner Takes $24M Ether Hit in Just 12 Seconds
