Abraxas Capital’s Short Bets on ETH, BTC, SOL, HYPE, SUI Lose $190M
Abraxas Capital’s two trading accounts hold significant short positions on multiple tokens, including Ethereum (ETH), Bitcoin (BTC), Solana (SOL), HYPE and Sui (SUI). According to Lookonchain data, these shorts have incurred over $190 million in unrealized losses, underscoring the risks of aggressive short strategies in volatile crypto markets. The firm’s Ethereum shorts alone amount to 113,819 ETH (valued at $483 million), generating an unrealized loss of around $144 million. Combined shorts on BTC, SOL, HYPE and SUI account for the remaining $46 million in losses. Traders should note the potential impact of these large-scale liquidations on market liquidity and volatility, especially if downward price swings persist.
Bullish
Abraxas Capital’s substantial unrealized losses on shorts suggest a potential short squeeze scenario. Should the firm liquidate or cover positions to stem further losses, this would generate significant buy orders for ETH, BTC, SOL, HYPE and SUI, likely supporting upward price momentum. Historical episodes, such as the 2021 ephemeral price surges following large-scale short liquidations on Bitcoin and Ethereum, demonstrate how forced coverings can amplify bullish trends. In the short term, traders may see increased volatility and upward pressure on these tokens as shorts unwind. Over the longer term, the event underscores market resilience and the dangers of aggressive short strategies, potentially deterring excessive leverage and contributing to more stable growth.