Wintermute reduces short position on Hyperliquid by $131 million

Market maker Wintermute has significantly reduced its short position on the Hyperliquid platform. According to onchain data, total short exposure fell from $211.53 million to $80.48 million, a reduction of more than $131 million. At the same time, Wintermute actually expanded its short position specifically on HYPE. At the time of writing, the HYPE price stands at $82, up 0.6% over the past 24 hours.

In brief:

• Wintermute reduced its total short position on Hyperliquid from $211.53 million to $80.48 million.
• The short position on HYPE itself increased, from $5.60 million to $10.20 million.
• The unrealised loss on the positions currently amounts to $568.800.

Major reduction, but HYPE short grows

OnchainLens flagged the movement via a tracked wallet on Hyperliquid. Wintermute’s total portfolio shows $80.48 million in short positions against only $5.51 million in long positions, for a total exposure of nearly $86 million.

Notably, Wintermute did not reduce its short position on HYPE but actually increased it: from $5.60 million to $10.20 million. The market maker is thus betting on a further decline in the token’s price, despite HYPE being slightly in the green today.

Unrealised loss of nearly $569.000

The short positions are not going well so far. The unrealised loss on the entire portfolio amounts to $568.800. This is because several shorted assets, including Solana and Dogecoin, have recently risen in value.

Hyperliquid has remained in the news over the past period. For example, HyperEVM recently set a daily record with $500.000 in revenue, and Kinetiq announced the Elysium L2 network with HYPE as gas. Whether Wintermute’s retreating move signals further risk reduction or a repositioning of positions cannot be determined from the onchain data alone.