A major cryptocurrency whale has launched a significant leveraged short position on Nvidia (NVDA) contracts on the decentralized platform Hyperliquid, just as CEO Jensen Huang confronts intense scrutiny following sensational espionage allegations.
Block trade and market impact
Blockchain analytics firm Lookonchain revealed that an unidentified trader opened a short position on 30,000 NVDA contracts, employing 10x leverage, and valued at approximately $5.44 million. The position was entered at an average contract price near $181.33, meaning the trader likely posted collateral of about $544,000 to control the full exposure.
These leveraged contracts allow traders to multiply market exposure while posting a fraction of the notional value. Shorting at such a large scale indicates a strong bearish view on Nvidia shares in the near term, coinciding with the company’s latest leadership turbulence.
Nvidia’s stock endured sharp losses ahead of Monday’s U.S. market opening as the controversy surrounding its leadership made headlines. Over the most recent five trading sessions, Nvidia shares dropped by approximately 8.8%. The stock, however, saw a partial recovery of 2.8% on Friday.
Espionage claims targeting Nvidia CEO
The controversy deepened after Jensen Huang, Nvidia’s CEO, reportedly confessed to being unfaithful to his wife during an internal meeting with employees on November 8. His admission came shortly after The New York Times published allegations involving Chinese intelligence efforts targeting him.
According to details published by The New York Times, U.S. intelligence agencies suspect Alice Huang, a Chinese businesswoman formerly associated with Singapore’s Megaspeed technology firm, of being enlisted by China’s Ministry of State Security to spy on Jensen Huang. Alice Huang’s past professional ties and contacts with Nvidia have become a focus of this suspicion.
A secret intelligence summary shared with senior Trump administration officials reportedly indicated that Beijing was seeking detailed information on U.S. artificial intelligence technology. The memo suggested that authorities intended to influence Nvidia’s approach regarding restrictions on the export of AI chips to China.
Megaspeed, identified as a purchaser of Nvidia’s advanced chips, is also under review by U.S. law enforcement amid reports that chips restricted under U.S. regulations could ultimately be sent to China via intermediaries. So far, however, claims of espionage remain unsubstantiated by publicly available evidence.
As noted by The New York Times, U.S. intelligence believes Alice Huang was recruited by China’s Ministry of State Security to collect sensitive information from Nvidia’s CEO, and a classified memo to senior officials pointed to China’s efforts to access American AI technologies.
How traders monitor rapid shifts in Nvidia’s outlook
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