Crypto Whale Nets $2.4M in 4 Hours with High-Leverage Shorts on Hyperliquid

Summary: A cryptocurrency whale earned $2.4 million in just four hours on May 17, 2025, by opening high-leverage short positions on ETH, PEPE, WIF, and OP through Hyperliquid, a decentralized trading platform, after withdrawing 2.96 million USDC from Coinbase.

Crypto whale, dormant for four years, made a dramatic return to the market on May 17, 2025, executing a series of high-leverage short positions that netted $2.4 million in profits within four hours, according to blockchain analytics platform Lookonchain.

The whale withdrew 2.96 million USDC from Coinbase and deposited it into Hyperliquid, a decentralized platform known for its zero gas fees and on-chain order book, before shorting ETH with 25x leverage and PEPE, WIF, and OP with 10x leverage.

Market analysis account AlvaApp pointed to clear technical signals behind the whale’s success. “There were clear signals for a tactical short: meme coin mania saw $PEPE and $WIF spike with heavy whale buys and extreme retail euphoria, while $ETH flashed a bearish MACD cross and open interest hit new highs—classic signs of a crowded long side primed for reversal,” AlvaApp posted on X.

The Moving Average Convergence Divergence (MACD) indicator, as explained by Investopedia, shows a bearish crossover when the MACD line falls below the signal line, often signaling a potential price drop.

The meme coin surge was evident in broader market trends. The Economic Times reported that Wall Street Pepe (WEPE), a new token linked to PEPE, raised $35 million in a viral presale, reflecting heightened retail investor enthusiasm. However, such rapid price surges often lead to corrections, which the whale exploited.

The cumulative value of the whale’s short positions exceeded $66.75 million, though it reported a lower profit of $1.26 million, possibly due to earlier data.

Hyperliquid’s infrastructure played a key role, offering up to 50x leverage and instant transaction finality, which ensures trades settle in under a second. While this enabled the whale’s rapid gains, experts caution that high-leverage trading carries significant risks, as losses can be amplified if the market moves against the position.

The whale’s success raises questions about market timing and transparency in crypto trading. Some speculate the trader may have had access to advanced market insights, while others see it as a textbook case of technical analysis. As DeFi platforms like Hyperliquid grow, their role in facilitating such high-stakes trades will likely draw increased scrutiny from regulators and investors alike.