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Hyperliquid Whale Shorts $5.44M in NVDA at 10x After Jensen Huang Affair Admission

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Cryptocoins News / CryptoNinjas 29 Views

Key Takeaways:

  • A Hyperliquid whale shorted 30,000 contracts of NVDA, which is approximately $5.44 million.
  • Upon NVIDIA Chief Executive Officer Jensen Huang making public admission that he was unfaithful to his wife, the trade came along.
  • The role will emphasize how equity news impacts the cryptocurrency perpetual markets when the equity markets are closed.

A crypto trader with a large stake has created a big bearish position on NVIDIA using Hyperliquid, a 24/7 crypto perpetual futures marketplace, to trade exposure to NVIDIA out of regular US market hours.

Shortly after Huang’s public admission, Blockchain analytics account Lookonchain noted the same position stating that the trade has been done from Hyperliquid’s wallet visible on Hypurrscan.

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Whale Takes $5.44M NVDA Short With 10x Leverage

The wallet had shorted 30,000 perpetual NVDA contracts and had a notional exposure of approximately $5.44 million with a 10x leverage.

Trade data available indicated that the price entered near $181.33 per contract, which takes the overall trade position size close to the total that is reported by Lookonchain.

Relatively small price changes can result in substantial percentage changes for the trader’s collateral with a 10x leverage rate. A declining NVDA price will work in the favor of shorts, but a big rally can have a negative impact on those who are looking to liquidate.

The job does not suggest that the trader was wagering the bet specifically with respect to Huang’s disclosure. Public blockchain data indicates when and how the position was opened, but doesn’t reveal the wallet owner’s motivation or that a trade is a hedging move in another position.

Read More: Tornado Cash-Linked Wallet Sells ETH to Buy Zcash on Hyperliquid

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Crypto Perpetuals Give Traders a Weekend NVDA Market

The timing may be significant as well because Hyperliquid work’s on Saturdays and Sundays.

Unlike regular NVIDIA, Nasdaq perpetual contracts do not close on weekends but give crypto investors directional exposure without the actual purchase of the shares.

It created a forum for traders to respond swiftly upon hearing NVIDIA’s announcement of Huang’s action and board’s independent inquiry. NVIDIA’s review is of reports that Huang was targeted by a foreign intelligence agency, the board said it did not believe at present that company secrets or national security were compromised.

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NVDA Perpetuals React Before Wall Street Reopens

The leverage short coincided with a downtrend in NVIDIA-related markets. Traders digested the weekend developments as NVIDIA near $180.30, about 3.4% off Friday’s $186.64 closing price on the Nasdaq, per Reuters reports.

It gives another application of perpetual exchanges to the crypto markets: trading around the clock tokenized or synthetic exposure to traditional assets.

The $5.44 million whale trade isn’t as much about predicting potential NVIDIA price moves as it is about how fast the leveraged crypto markets can nail down big corporate news before the market closes at regular time.

Read More: ICE Partners With Trade[XYZ] to Bring $650B Hyperliquid Futures Market to the U.S.

The post Hyperliquid Whale Shorts $5.44M in NVDA at 10x After Jensen Huang Affair Admission appeared first on CryptoNinjas.


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