Mystery 50x ETH Whale Shifts Focus to Chainlink, After Testing Hyperliquid’s Limits

An anonymous cryptocurrency trader, known for ultra-leveraged bets, has caused waves in the market once again. This time, the trader has shifted focus from Ether (ETH) to Chainlink (LINK), placing a massive bet on the decentralized oracle service following a previous high-risk position on Hyperliquid that tested the platform’s limits.

A New Bet on Chainlink

On March 14, the same trader, dubbed “ETH 50x Big Guy” on X (formerly Twitter), entered into a significant position in Chainlink (LINK). According to Web3 analytics firm Lookonchain, the trader took out long positions worth approximately $31 million in LINK, leveraging the position 10 times. These trades were made on popular perpetuals exchanges, Hyperliquid and GMX. Additionally, the whale acquired roughly $12 million in spot LINK.

However, by the following hours, the whale gradually reduced its LINK holdings through small swaps, converting some of the tokens back into stablecoins. This move indicates that the trader, while still betting on LINK, may be managing risk and taking profits along the way.

The Previous $200 Million ETH Gamble

This latest bet follows a high-profile and controversial move by the same trader just two days earlier. On March 12, the whale liquidated a massive $200 million long position in Ether (ETH) on Hyperliquid, a perpetual trading platform. The liquidation caused a significant impact, leading Hyperliquid’s liquidity pool (HLP) to lose around $4 million. However, the trader walked away with a profit of roughly $1.8 million.

This event, which caught the attention of the crypto community, exposed some of the inherent risks in leveraged perpetual trading platforms. Hyperliquid, which allows traders to open positions far larger than their collateral, struggled under the weight of such extreme leverage. However, the platform clarified that the trader’s actions did not constitute an exploit, instead calling it a predictable outcome based on the platform’s mechanics during high-stress conditions.

Hyperliquid Responds to Market Volatility

In response to the massive losses triggered by the whale’s actions, Hyperliquid introduced revised collateral rules on March 13. These new measures aim to safeguard against similar situations in the future, providing additional protections for traders with open positions on the platform. Despite the loss, Hyperliquid remains one of the leading perpetual exchanges, boasting a 70% market share according to a January report by asset manager VanEck, surpassing competitors like GMX and dYdX.

Chainlink's Price Struggles Amidst Market Volatility

Chainlink, the decentralized oracle service that powers many blockchain applications, has seen dramatic fluctuations in the price of its native token, LINK. Following a surge of over 150% in the weeks after President Donald Trump’s victory in the U.S. election, LINK hit highs of nearly $30 per token. However, as of March 14, the price has significantly declined, falling to just under $14, according to data from CoinGecko.

Despite this recent pullback, Chainlink’s market capitalization remains robust, sitting at around $8.7 billion. Its position as a key player in the decentralized oracle space ensures continued interest from both retail and institutional investors, even amid market volatilit

The Risks and Rewards of Ultra-Leveraged Trading

The actions of the anonymous whale highlight the high-risk, high-reward nature of ultra-leveraged trading in the cryptocurrency space. Platforms like Hyperliquid, which enable traders to take leveraged positions many times larger than their initial capital, attract traders seeking to make massive gains in a short period of time. However, such trades also expose platforms to significant risk, especially when large liquidations occur.

As the whale shifts focus from Ether to Chainlink, the market will continue to monitor its moves. For now, the crypto community remains divided over the consequences of such extreme trading strategies—while some view the moves as savvy, others caution against the risks they pose to market stability.

In the coming weeks, it will be interesting to see whether the whale’s focus on Chainlink will yield further profits or if the volatility in the crypto market will lead to another dramatic shift in strategy.