Hyperliquid’s Qwatio Loses $3.7M on Massive Bitcoin and Ethereum Shorts Amid Crypto Surge

A trader on Hyperliquid known as Qwatio has incurred hefty losses totaling nearly $3.7 million this week after taking aggressive short positions on bitcoin (BTC) and ether (ETH), according to on-chain data.

At present, Qwatio is holding a 40x leveraged short on BTC and a 25x leveraged short on ETH.

This past weekend alone, the trader was liquidated five times, as both BTC and ETH prices surged, hitting $108,200.53 for bitcoin and $2,557.21 for ether.

Qwatio has built a reputation for high-risk trading tactics reminiscent of James Wynn, previously placing substantial long bets on BTC and ETH earlier this year. The trader’s current pivot to significant short positions signals a dramatic change in market sentiment and strategy amid heightened crypto volatility.

Earlier in 2025, Qwatio grabbed attention for opening $200 million in BTC and ETH leveraged positions at 50x just hours before U.S. President Donald Trump signed an executive order creating a national crypto reserve—a move that subsequently fueled a sharp rally in crypto prices.

Outside of BTC and ETH trades, Qwatio also participated early in the Melania memecoin during its initial launch this year.

Meanwhile, data from CoinGlass shows that the crypto market has witnessed about $50 million in liquidated ETH short positions and $31 million in BTC shorts over the past 24 hours, highlighting the current volatility and risks facing traders in crypto derivatives markets.