Hyperliquid Trader Squanders $26M Ethereum Short Profit, Ends With $716K Loss
A trader on the Hyperliquid exchange has made headlines after watching a massive profit vanish into losses on a risky Ethereum (ETH) short.
According to data from Lookonchain, the wallet 0xCB92 opened a 50,000 ETH short position, which at one point was sitting on over $26 million in unrealized gains.
Instead of closing the trade, the trader doubled down by adding another 10,000 ETH to the short—even as ETH’s price was moving higher. Since short sellers profit from falling prices, the rising market quickly turned the position negative.
Ultimately, the position was liquidated, locking in a $716,000 realized loss, Lookonchain reported on Thursday.
It’s possible the trader intended the short as a hedge against other positions, but no offsetting trades were visible in the wallet, suggesting this was a standalone speculative move.
Echoes of James Wynn’s Trading Drama
The loss brings to mind the dramatic trades of James Wynn, whose high-risk strategies have previously put Hyperliquid in the spotlight.
In May 2025, Wynn famously built a $1.25 billion long position in bitcoin (BTC) at an average price of $108,243. But when BTC fell below $105,000 following President Trump’s announcement of new tariffs on European Union exports, Wynn’s position rapidly collapsed.
He suffered a series of liquidations, including a 527 BTC position worth over $55 million and a 421 BTC stake valued around $44 million. Altogether, Wynn lost more than $100 million in just a few days, fueling debates about whether his actions reflected bold speculation—or reckless gambling.
Since that crash, Wynn has avoided trades of similar size. Now, traders are watching to see if wallet 0xCB92 becomes Hyperliquid’s next big risk taker.
