Hyperliquid Whale Holds $38M Bitcoin Short Position as Funding Rates Turn Negative

Hyperliquid Whale Holds $38M Bitcoin Short Position

A prominent cryptocurrency whale on Hyperliquid exchange is maintaining a $38 million short position against Bitcoin and several altcoins, signaling potential bearish sentiment as BTC struggles to break above $78,000.

The whale, operating under the address 0x7fda…c517d1 and known as BobbyBigSize, has generated $159 million in profits over the past seven months through algorithmic trading strategies. However, recent performance shows a $561,000 loss over the past 30 days, raising questions about whether the bearish positioning provides meaningful market signals.

BobbyBigSize currently holds $19.4 million in assets deposited on Hyperliquid, with 63% of trades resulting in positive outcomes. The whale’s portfolio shows a $38 million short position in Bitcoin and multiple altcoins, alongside a $21 million leveraged long position in Ether, opened last week.

The entity gained prominence during the October to November 2025 market crash by placing leveraged short bets on Ether, Hyperliquid, Avalanche, and Fartcoin. Using algorithmic trading, the whale has executed a staggering $11 billion in trades on Hyperliquid exchange, including short-duration long positions in Bitcoin and Solana.

Arkham data previously linked this address to Fasanara Capital, a London-based institutional asset manager that reportedly manages over $5 billion in assets. According to Fasanara Digital’s website, the firm launched in 2018 and manages $400 million across market-neutral strategies and venture investments, with an additional $150 million managed through a quantitative multi-manager approach.

The average trade duration for BobbyBigSize has been slightly longer than two weeks, while the median position has lasted for less than four days, according to Hyperdash data. This short-term trading pattern suggests the whale’s positions may not indicate longer-term market direction.

Bitcoin gained 29% since the $60,100 yearly low on February 6, and many analysts believe it is on the verge of a longer-term breakout. However, the whale’s bearish positioning comes as funding rates across major exchanges show unusual patterns.

Funding rates for Bitcoin and Ether stood slightly positive on Hyperliquid, indicating moderate demand for leveraged long positions. Under neutral circumstances, longs pay 6% to 12% annualized rates to maintain their positions.

However, funding rates turned negative on Binance and Bybit, signaling unusually high demand for bearish leverage. This divergence across exchanges points to increased skepticism about Bitcoin’s ability to maintain recent gains above $78,000.

The overall market setup remains bullish despite the bearish positioning from prominent traders. Bitcoin has shown resilience in recent weeks, though it has struggled to break through key resistance levels that would confirm a sustained upward trend.

The whale’s current portfolio positioning is generally bearish, suggesting an expectation of a short-term correction. The combination of a large Bitcoin short position and a long Ether position indicates selective pessimism rather than blanket negativity across all cryptocurrencies.

The strategy behind Fasanara Digital’s approach to cryptocurrency was not clearly specified on the company’s website. The firm’s quantitative approach and market-neutral strategies suggest sophisticated trading methods rather than directional speculation.

Algorithmic traders are known for being erratic and unpredictable, and losses by BobbyBigSize over the past couple of months demonstrate that no single trading strategy lasts indefinitely. The whale’s success rate of 63% is considered highly successful in cryptocurrency trading, but recent losses highlight the volatile nature of leveraged positions.

The bearish positioning by BobbyBigSize aligns with the increased demand for leveraged short positions across major exchanges. Bitcoin traders should consider the possibility of a retest of the $75,000 level, though the whale’s short-term trading pattern suggests these positions may not hold for extended periods.

The cryptocurrency market continues to show mixed signals, with bullish price action conflicting with bearish funding rates and large short positions from sophisticated traders. Whether Bitcoin can break through resistance at $78,000 or retreat to test lower support levels remains uncertain.

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