Whale's $140 million short position surfaces: What signals are revealed by 20x leverage shorting of the three major mainstream coins

A few hours ago, a major whale established a $140 million large short position through high leverage, simultaneously shorting BTC, SOL, and ETH markets. This operation is massive in scale and highly leveraged, making it particularly notable in the current market environment. Why did the whale choose to short heavily at this time? What risks are hidden behind high leverage?

Specific Scale of the Whale’s Short Operation

According to on-chain analyst The Data Nerd’s monitoring, the composition of this short position is as follows:

The core feature of this operation is the uniform use of 20x leverage, indicating that this is not a temporary small hedge, but a large-scale short strategy carefully thought out by the whale.

Market Background: Why Short Now

Looking at BTC’s recent performance, the market indeed shows a downward trend. According to the latest data, BTC’s current price is $91,192.87, down 0.47% in the past 24 hours and down 2.57% over the past 7 days. Although it still increased by 0.87% monthly, recent correction pressures are evident.

Three Layers of the Whale’s Shorting

First, it reflects a bearish outlook on the short-term market direction. As the largest market cap crypto asset, BTC accounts for 58.66% of the entire market, and its movement often represents overall market sentiment. The whale’s simultaneous shorting of BTC, SOL, and ETH essentially indicates a bearish stance on mainstream cryptocurrencies.

Second, it reveals existing disagreements within the market. On one hand, mainstream financial institutions continue to allocate to crypto assets; on the other hand, on-chain large holders are worried about short-term corrections. This operation by the whale may signal a divergence of opinions within the market.

Third, it demonstrates high-leverage operators’ confidence in their own judgment. A 20x leverage means a 5% adverse move could trigger liquidation risk. The whale’s willingness to adopt such leverage suggests a high degree of certainty about the market direction.

Risk Assessment of High Leverage Operations

Liquidation Risk

Taking BTC as an example, if the whale’s $69.93 million short position uses 20x leverage, it means:

• Margin approximately $3.4965 million
• A 5% increase in BTC price could trigger liquidation
• If BTC rises more than 5%, the margin could be entirely lost

Such high-risk operations, once liquidated, could cause huge losses and potentially trigger chain reactions in the market.

Market Liquidity Risk

A $140 million short position requires substantial liquidity to close. If the market suddenly moves in the opposite direction, the whale may face difficulties in closing positions promptly, further amplifying losses.

Comparison with Other Whale Activities

Notably, recent on-chain activity includes multiple whale operations: one whale deposited 417,700 TRUMP tokens on Binance, facing a 67% loss; another whale transferred $12.54 million worth of LINK to multi-signature wallets. These actions reflect a cautious attitude among whales in the current market environment—either stop-loss operations or strategic adjustments.

What Does This Short Operation Signify

Market Signal Perspective

Large-scale shorting by whales is generally seen as a bearish market signal. Such major players possess extensive information and analysis capabilities, and their actions often represent deeper market expectations. However, this signal should be interpreted cautiously—whales can also make mistakes, and high leverage inherently involves significant risk.

Trading Strategy Perspective

From the perspective of leverage uniformity, this appears more like a systematic bearish strategy rather than a specific judgment on individual coins. Such approaches are common when the market reaches obvious highs or when negative policy signals emerge.

Points to Watch Moving Forward

The trajectory of this short position will serve as an important window into market sentiment. If BTC continues to decline, the whale’s judgment will be validated; if BTC rebounds and breaks through, this high-leverage short could face rapid liquidation, further pushing prices higher.

Summary

The whale’s establishment of a $140 million short position, with extremely high leverage, reflects bearish sentiment in the market. However, it must be clear that high leverage is a double-edged sword—it amplifies potential gains but also magnifies risks. While this operation indeed signals a bearish outlook, the reliability of this signal depends on subsequent market performance. For ordinary investors, the key is not to be misled by whale actions but to make rational decisions based on their own risk tolerance.