Entity Sells 31,700 ETH on Hyperliquid to Repay Aave Loans Across 11 Wallets
An entity has sold large quantities of Ether (ETH) on Hyperliquid to repay Aave loans tied to 11 wallets. On-chain monitoring by MLM shows the seller executed ~31,700 ETH (~$80.8M) in the past 5 hours and ~47,000 ETH (~$120M) over four days. The same entity still holds 49,600 ETH (~$112M) posted as collateral on Aave and has borrowed roughly $86M USDC against it. As ETH prices fell, the position approached liquidation thresholds, prompting continued ETH sales to reduce debt and avoid full liquidation. Key metrics: 31,700 ETH sold in 5 hours, 47,000 ETH sold in 4 days, 49,600 ETH collateral, ~$86M USDC borrowed. This forced deleveraging on Hyperliquid could increase short-term sell pressure on ETH; traders should monitor on-chain flows, liquidation levels on Aave, Hyperliquid order books, and ETH price momentum for potential volatility and liquidity impacts.
Bearish
Large, concentrated sell orders of ETH to repay loans increase immediate sell pressure and reduce available liquidity, which is typically bearish in the short term. The seller liquidated ~31,700 ETH in 5 hours and ~47,000 ETH over four days while keeping 49,600 ETH as collateral and owing ~$86M USDC — a sign of forced deleveraging as the collateral approached Aave liquidation thresholds. Similar past events (e.g., protocol liquidations or whale forced sales) have led to short-term price dips and heightened volatility. Traders can expect: 1) near-term downside risk as additional collateral sales continue, potentially triggering stop-losses and cascading liquidations; 2) increased intraday volatility and spread widening on platforms like Hyperliquid and major exchanges; 3) once deleveraging completes, price may stabilize or recover if market absorbs the supply. Risk depends on remaining selling pace, market depth, and broader crypto risk sentiment. Monitor on-chain liquidation markers, Aave health factors, Hyperliquid order books, and overall ETH spot volume for trade signals.