Whale Goes Big on PEPE with 10x Leverage, Faces Losses
A whale's $27.53M PEPE long position on Hyperliquid faces $3.238M in losses. Find out how they are managing the risk.
- Whale opened a $27.53M 10x leveraged long on PEPE at $0.00814.
- The position faces $3.238M in unrealized losses.
- To avoid liquidation, $3.818M USDC was added in margin.
Whale’s Bold Bet on PEPE Turns Risky
A whale address 0x507…BeDb6 recently made a high-stakes move by opening a 10x leveraged long position on PEPE using the decentralized exchange Hyperliquid. The position, established on March 24, had an entry price of $0.00814 per 1,000 PEPE.
This aggressive bet brought the whale’s total position size to approximately $27.53 million. However, market volatility has not been kind, resulting in an unrealized loss of $3.238 million. The current pressure on PEPE’s price has placed the whale in a precarious position.
Margin Management to Prevent Liquidation
To counteract the risk of liquidation, the whale has actively managed their margin. Over the last 21 hours, the address deposited an additional $3.818 million in USDC into their Hyperliquid account. This move effectively lowers the immediate risk of liquidation, which stands at a price of $0.005219.
Such margin injections are a common strategy among large-scale traders to maintain their positions in volatile markets. While this provides temporary relief, the whale remains vulnerable to further downside moves.
Market Impact and Speculations
The whale’s activities have drawn considerable attention within the crypto community. Large leveraged positions can influence market sentiment and lead to unpredictable price movements. Additionally, with PEPE being a meme coin, its volatility tends to be higher, further amplifying risks.
Traders and investors will be closely watching how the whale navigates this high-risk scenario. Will the market turn in their favor, or will additional margin be needed to fend off liquidation?
