Whale ‘Buddy’ Holds 8,000 ETH 25x Long Ahead of Massive Options Expiry
A large trader nicknamed “buddy” has built concentrated leveraged long positions ahead of a major options expiration, drawing market attention and coinciding with an ETH price rally. Monitoring firm Hyperinsight reports the trader added 525 ETH of long exposure over roughly 16 hours, closed BTC longs, and now holds: 1) an 8,000 ETH position in ETH at 25x leverage with a reported liquidation price near $2,870; and 2) an 8,000 HYPE position at 10x leverage. The moves come as a sizable options expiry for BTC/ETH approaches, increasing the potential for squeezes and heightened volatility. Key details for traders: position sizes (8,000 ETH at 25x), leverage levels (25x for ETH, 10x for HYPE), recent additions (+525 ETH in ~16 hours), and liquidation price (~$2,870 for the ETH long). These concentrated, highly leveraged positions can amplify short-term price swings, influence funding rates and order-book dynamics, and raise the risk of cascading liquidations if price moves toward the liquidation level. Traders should monitor open interest, options expiry flow, funding rates, and order-book depth around major exchanges to gauge potential squeeze pressure and manage risk accordingly.
Bullish
The presence of a single large trader holding an 8,000 ETH position at 25x leverage ahead of a major BTC/ETH options expiry is likely to be bullish in the near term for several reasons. First, the size and direction (large leveraged long) can create upward pressure via directional buy flow and delta-hedging by options market makers who may buy spot or futures to offset short call exposure. Second, the addition of 525 ETH in a short window signals active conviction, which can attract momentum traders and increase buying interest. Third, concentrated long positions ahead of expiries can lead to short squeezes if price moves up, forcing short-covering and further amplifying gains. However, the high leverage also increases tail risk: if price falls toward the reported liquidation (~$2,870), rapid deleveraging could trigger a sharp sell-off and cascading liquidations, producing transient bearish moves. For trading: expect elevated volatility, changes in funding rates (likely moving positive if longs dominate), and potential order-book thinning on the upside that enables larger moves. Short-term outlook: cautiously bullish with elevated volatility and squeeze risk. Long-term outlook: neutral to bullish depending on whether the position endures and broader fundamentals (network activity, macro liquidity). Traders should size positions conservatively, use stops or options hedges, and monitor open interest, funding rates, and exchange flows closely.