Abraxas Builds $783M Hyperliquid Short, Hedges ETH as BTC Hits $77.5K

Bitcoin rallied 23% over the past week, closing near $77,500, marking its strongest weekly gain since March 2023. The surge triggered roughly $2.5 billion in Bitcoin short liquidations since August 19 and contributed to $3 billion in leveraged Bitcoin short liquidations over three days.

Whale Short Positions Remain Intact

On‑chain data shows that Abraxas Capital, Fasanara Capital and Wintermute together hold short positions of 138,569 ETH and 3,425 BTC, valued at about $338 million and $265 million respectively. While heavily leveraged retail whales have been liquidated, these market‑maker accounts continue to carry sizable bearish exposure.

Abraxas’ Hyperliquid Short and ETH Hedge

Abraxas Capital built an estimated $783 million short exposure on Hyperliquid, a decentralized perpetual futures exchange. Over the prior four days the firm withdrew 73,872 ETH (approximately $173 million) from Binance, using the assets as a hedge. The fund’s strategy is described as market‑neutral, pairing short derivatives with separate holdings rather than making pure directional bets.

Broader Market Context

U.S. spot Bitcoin ETFs recorded net inflows of $1.9 billion last week, the largest since January. Treasury Secretary Scott Bessent’s plan to double long‑dated bond buybacks lowered yields and revived risk‑asset appetite. Additionally, President Trump is urging the Senate to pass the CLARITY Act by September 15, a bill aimed at clarifying crypto trading rules.

Implications

The ongoing Bitcoin rally puts pressure on any short exposure, whether it functions as a hedge or a speculative bet. Market makers like Wintermute and Fasanara have maintained Hyperliquid shorts through previous Bitcoin uptrends, but the current magnitude of the rally increases mark‑to‑market losses across the board.