Top Hyperliquid Trader Shorts $97K in ETH Amid Bullish Market

One of the largest traders has gone on a big short Ethereum. X was informed of this by Whale Watch Perps today. According to the post, a leading PnL trader on Hyperliquid was shorting a total of 20,000 in ETH at a price of 4,110.90. The balance of shorting in the trader is now 97, 140. They have an average entry price of 4096.77. This stance is when Ethereum trades with a high bullish momentum.

A top trader by PnL on Hyperliquid just went short $20K of $ETH at $4,110.90

This user's current position is short $97.14K of $ETH at an average price of $4,096.77.

This user would be liquidated at $8,818.49

— Whale Watch Perps (@whalewatchperps) October 15, 2025

The post provided that the liquidation price of the trader is at $8,818.49. In case ETH reaches that mark, then the trader will have his position liquidated. This broad liquidation gap is an indication of high leverage or reporting mistake. Liquidation of most perpetual exchange leveraged shorts is significantly closer to entry.

Understanding the Trade

Short position implies that the trader anticipates a price decrease of ETF. They take ETH on credit, sell it at the moment, and plan to repurchase it at a lower price. When ETH decreases, they will make money off the disparity. However, when ETH is on the rise they lose and stand to be liquidated.

This brief is an addition to a significantly larger standing. The trader appears to believe that there will be a reversal in the short term. Their new short of 20K is an addition to their exposure of 97K. Even minor fluctuations in ETH are relevant, with the price of the cryptocurrency standing at approximately, 4,100. A one-ten-thousand increase can affect thousands of dollars in loss realized.

About Hyperliquid

Hyperliquid is a decentralized perpetual futures exchange. It is based on its own Layer 1 blockchain. The platform has on-chain order books, which guarantees total transparency. All the orders and liquidations occur on-chain. This upkeep will avoid manipulation that occurs in off-chain systems.

Hyperliquid was launched in 2023 and then expanded rapidly in 2024-2025. It draws traders that are self-custody and speedy. The exchange also backs more than 100 trading pairs. Its daily trading volume tends to exceed its daily trade of over 50-100 million dollars. It is popular among whales due to low latency and liquidation that is offered via smart-contracts.

Ethereum Market Sentiment.

The short trade occurs at a bullish period of ETH. The price of Ethereum has increased more than 60 percent during the last six months. The Coinpedia analysts predict that ETH will be at 12,000 before the year-end of 2025. They give drivers as approvals of ETFs, institutional inflows, and network upgrades.

However, this trader apparently believes that ETH will experience some stagnation in the near future. They may anticipate a correction in the short-term and then another leg up. Other traders take a short-term position to hedge a spot position. Some just grab the volatility and make money out of it.

Ethical charts indicate that the RSI of ETH is close to 46 which is a neutral zone. It indicates that there is a possibility of consolidation and not a sudden drop. Nevertheless, shorting in this case is very risky. Without ETH returning to its previous levels of $5,500 (some may predict higher) it could become an increase in losses.

Liquidation Mechanics Explained.

Liquidation takes place when the margin balance of a trader falls below the safety levels. This will be done automatically using smart contracts on Hyperliquid. When the liquidation process begins, the position is immediately closed on the platform. The cost of the liquidation price of 8818.49 appears to be high. A short at 10x leveraged at $4,096 would normally liquidate approximately $4,500. The high gap could indicate less leverage or tailor-made parameters. It might also show an on-screen display bug or data corruption. Nonetheless, this demonstrates the remainance of risky leveraged trading. A single volatility move can be wiped out in an account. On-chain tracking is transparent, which allows other individuals to track such whales in real time.

Whale Watch Perps’ Role

Whale Watch Perps monitors huge crypto transactions in exchanges. They have their data based on on-chain analytics and APIs. They deal with large accounts that have good track records. Whenever such traders relocate, markets observe. Their updates often go viral. They have an impact on trader sentiment and short-term price action. This post adds to that trend. This trader leaves a lot to be desired by many analysts.

The trader can make fast gains in case ETH goes down to under 4,000. That would support their near-term pessimistic opinion. The losses may accumulate rapidly in case ETH climbs above $4,300. Their margin might reduce drastically in case the move goes up. Volatility is high also because of the huge short position. The whale could be countered by other traders who will make long bets against the whale. Short covering may lead to a short squeeze in case ETH overcomes resistance. In such events, prices may shoot up. One more point that is brought out by this move is the emergence of decentralized trading. On-chain systems are favored by traders on platforms such as Hyperliquid, dYdX, and Aevo. They provide the absence of centralized control, but at the same time they publicize trades.