A pseudonymous trader operating under the alias “watershedpath” is currently holding the largest on-chain long position in HYPE, the native token of Hyperliquid, according to blockchain analytics platform Arkham. The position stands at $111 million, with an unrealized profit of $58 million.
Trader maintains HYPE exposure
Arkham reported that watershedpath has maintained this significant HYPE position for almost a full year. In the fast-paced cryptocurrency market, where perpetual contracts are often held for only a few days or weeks, such a long holding period is notable. The profit remains on paper and is still subject to price movements in HYPE.
Rather than choosing to close the position and lock in profits, the trader recently withdrew $18.5 million from the position’s margin. This move offers insight into the trading strategy preferred by one of the largest holders of HYPE.
He’s up $58 million with the largest HYPE long on-chain. Trader “watershedpath” has been long $HYPE for almost a whole year, now holding $111 million in HYPE exposure—making this the largest single long position on-chain. Instead of selling, he withdrew $18.5 million of margin.
Strategy behind margin withdrawals
Withdrawing margin while maintaining a leveraged position lets a trader monetize gains without reducing market exposure. However, this maneuver increases liquidation risks, as removing margin lowers the buffer needed to protect the position against adverse price movements. A sharp downturn in HYPE could trigger liquidation more quickly than before, though the details of watershedpath’s liquidation margins and initial entry point remain undisclosed.
Arkham provided no further specifics regarding the price level where the position was opened, nor the exact margin thresholds for liquidation.
Mini dictionary: Hyperliquid is a decentralized exchange built to facilitate perpetual futures contracts on-chain, enabling users to trade cryptocurrency derivatives without an intermediary.
HYPE price and market backdrop
This large HYPE position comes as Hyperliquid’s token has experienced marked volatility. Over the past month, HYPE’s price increased by more than 46%, with a further 16% gain in the last seven days. At the time of the report, HYPE was trading at $82.06 and its 24-hour trading volume neared $1.16 billion.
The trading activity and price performance add further context to the scale of watershedpath’s position and the associated risks and rewards.
| Metric | Value |
|---|---|
| Trader position size | $111 million |
| Unrealized profit | $58 million |
| Margin withdrawn | $18.5 million |
| Current HYPE price | $82.06 |
| Monthly price change | +46% |
| Weekly price change | +16% |
| 24-hour trading volume | $1.16 billion |
