Whale Deposits USDC on HyperLiquid to Avoid ETH Liquidation
Onchain Lens data show a large cryptocurrency whale has deposited 9.5 million USDC over two days on HyperLiquid to stave off an imminent ETH liquidation. The whale’s 20x leveraged short position on $66.4 million of ETH is currently facing a floating loss of roughly $19.9 million after the USDC deposit. This case of active risk management by the whale underlines how traders use USDC deposit strategies to manage margin calls and avoid ETH liquidation. Market watchers should note that such heavy leverage and emergency deposits could heighten short-term volatility in Ethereum markets. Similar past events have led to sharp price swings when forced liquidations occur, suggesting traders remain vigilant around key support levels.
Bearish
A $66.4 million, 20x leveraged ETH short position backed by 9.5 million USDC highlights significant bearish conviction and downside risk in Ethereum. By topping up margin on HyperLiquid, the whale avoids forced ETH liquidation that would otherwise buy ETH back and trigger upward squeezes. This defensive action underscores the vulnerability of over-leveraged shorts and tends to precede further market pressure when large positions remain open. Historically, similar margin top-ups delayed cascade liquidations but also signaled persistent selling pressure, often leading to renewed volatility and downward price swings once position maintenance ceases. Traders should watch for potential price declines and continued volatility as the market tests key support levels.