Two of crypto's largest liquidity providers are running heavily short even as the broader market rallies, on-chain data shows. Lookonchain reported that Abraxas Capital has built roughly $783 million in short positions on Hyperliquid, while simultaneously withdrawing 73,872 ETH (about $173.17 million) from Binance over four days — a hedge that points to a market-neutral strategy rather than a straightforward directional bet against the rally.
Separately, Coin Bureau flagged Wintermute's own short book on Hyperliquid at $190.8 million, led by $53 million in ETH shorts, $30.7 million in BTC, $22.6 million in SOL and further exposure in HYPE and XRP. Lookonchain separately estimated that Abraxas, Fasanara Capital and Wintermute collectively hold short positions north of 138,569 units across major assets, describing the trio's hedging books as now dwarfing the remaining long exposure of large individual whales.
Hedging, not necessarily betting against the rally
Market makers routinely carry offsetting positions across venues as part of inventory management, and a short position on a perpetuals exchange like Hyperliquid doesn't automatically signal a bearish view on price. Abraxas Capital's pattern — shorting derivatives on Hyperliquid while simultaneously pulling spot ETH off Binance — is consistent with a delta-neutral or arbitrage-style setup rather than a directional wager that the rally reverses.
Wintermute's short book has also grown in stages rather than all at once, expanding from roughly $146 million to $190.8 million over recent days as the firm adjusted its hedges alongside price action across BTC, ETH, SOL and HYPE.
Related: Hyperliquid Builder Codes Hit Record $984M in Daily Volume
What it means for a market still testing its highs
Even so, the scale of the combined short exposure is notable at a moment when Bitcoin has posted its best week since 2023 on the back of renewed ETF inflows. Lookonchain separately noted that large individual whale positions appear to have been mostly liquidated in the recent price surge, leaving market-maker hedging books as the dominant short-side presence left on the board.
For traders, that combination — retail and whale longs largely cleared out, while market makers sit on nine-figure hedged shorts — is often read as a sign that the market has more room to run before positioning gets genuinely crowded on either side. It also means any sharp reversal could trigger unwinds on both sides of the ledger simultaneously, amplifying volatility in either direction.
