From Bearish to Bullish: Hyperliquid's Largest Short Whale Liquidates SOL for $199,000

According to the latest news, on the afternoon of January 12th, the whale address (0x94d37), which was once the largest BTC short position on Hyperliquid platform, closed a $33.46 million SOL long position, realizing a profit of $199,000. This operation reflects a major strategic shift by this large holder from extreme bearishness to active bullishness.

The Whale’s Identity Transformation

This address was initially known for its extreme bearish stance. According to monitoring data, the address once held a position of $120 million, making it the largest BTC short on Hyperliquid, and was considered one of the most steadfast on-chain bears. However, starting from December last year, this address underwent a fundamental change in strategy.

It shifted from continuously building short positions in mainstream coins like BTC and ETH to opening long positions in a counter-move, gradually increasing positions in multiple tokens. Such a 180-degree attitude change is uncommon among on-chain whales and usually indicates a significant reassessment of market outlook.

Details of the SOL Closeout

Although the SOL closeout realized a profit of $199,000, it is noteworthy that the overall account is currently in an unrealized loss. This suggests that other long positions offset the gains from the SOL closeout, and there are even losses.

Overall Position Size and Recent Performance

According to the latest monitoring, this whale’s total holdings have rebounded to $315 million, with long positions in BTC, ETH, SOL, XRP, and other major tokens. More importantly, its recent profit and loss performance shows:

• Profit/Loss in the past 1 day: approximately $5.3 million
• Profit/Loss in the past 1 month: approximately $14.5 million

This indicates that, despite the current unrealized losses, the overall strategy since building the position in December has been profitable. The initial account size was about $20 million, which has grown to $315 million through gradual position increases, demonstrating a strong bullish outlook on the current market.

Market Significance

The whale’s transition from a short to a long position, along with continuous position expansion, reflects an optimistic attitude among large on-chain holders regarding the market outlook. Especially regarding its operations in SOL, although closing the position now may be a profit-taking move, the overall position expansion indicates that this address does not hold a bearish view on SOL.

Closing the SOL long position could be for adjusting the position structure or taking partial profits, rather than a bearish signal on SOL’s prospects. Given that it continues to hold SOL long positions (according to relevant information, it still maintains SOL long positions), this address remains optimistic about SOL.

Summary

This former largest BTC short position has now turned into an important participant in the long camp. Although the recent SOL closeout is just one adjustment within its $315 million holdings, the strategic shift and ongoing position increases reflect a bullish sentiment among on-chain whales. The $14.5 million profit in the past month further validates the effectiveness of this strategic change. For market participants, tracking such large holders can help understand the evolving market sentiment.