- Trader “Tether FUD” attracted significant attention with a $450 million leveraged short position on Bitcoin, earning $3.5 million in 24 hours.
- The trader narrowly avoided liquidation by adding $5 million in collateral as crypto enthusiasts considered organizing to force liquidation.
- Despite the size of the leveraged position, “Tether FUD” manages a relatively modest $21 million portfolio compared to other traders on the Hyperliquid platform.
A cryptocurrency trader operating under the name "Tether FUD" captured the crypto community’s attention this weekend with a massive leveraged short position against Bitcoin. The trader, quickly dubbed the "HyperBearWhale" by observers, established a 40X leveraged position worth over $330 million on the Hyperliquid trading platform.
The high-risk position nearly faced liquidation before the trader added $5 million in additional collateral just in time to maintain the position. By Sunday evening, the trader’s portfolio had expanded to $21 million as their leveraged bet increased to approximately $450 million.
The short position proved profitable in the short term, generating an impressive $3.5 million in returns within a 24-hour period. The trader actively managed the position throughout the weekend, making several strategic adjustments including modifying take-profit orders, increasing collateral, and adjusting leverage ratios.
Beyond the Bitcoin short, "Tether FUD" also established a relatively small $2.3 million long position in MELANIA, a cryptocurrency memecoin.
The trading activity sparked considerable speculation across social media platforms, with some observers suggesting the trader must be a federal official or someone possessing insider information. The dramatic nature of the position and its narrow escape from liquidation created a temporary spectacle in the cryptocurrency community.
Despite the considerable size of the leveraged position, "Tether FUD" is far from the largest trader on Hyperliquid. By traditional definitions, the $21 million portfolio would classify the trader as a "dolphin" rather than a true "whale," which typically requires holdings of at least 1,000 BTC (approximately $83 million). The platform hosts several much larger funds managing billions in assets.
The situation intensified on Sunday when some cryptocurrency enthusiasts proposed a coordinated effort to push Bitcoin prices higher with the explicit goal of forcing liquidation of the short position. One liquidity provider named CBB even claimed that Justin Sun had sent messages to the trader as an intimidation tactic.
The trader’s name "Tether FUD" references a long-standing debate within cryptocurrency circles regarding the relationship between USDT (Tether) minting activities and Bitcoin Price movements.
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