Market makers expand BTC, ETH shorts on Hyperliquid, likely as spot hedge

Three crypto market-making firms including Abraxas Capital, Pasaana Capital and Wintermute have built $603 million in Bitcoin and ETH short positions on Hyperliquid and are sitting on about $75 million in unrealized losses, according to Crypto Briefing. Despite a sharp rise in BTC and ETH and a wave of forced liquidations in short positions, the firms increased the size of those positions, the outlet reported. Crypto Briefing said the trades appear to be aimed at hedging spot holdings or reflect a view that the current rally has become excessive amid macro liquidity conditions. As the positions use leverage, the actual capital committed may be smaller than the total exposure. The outlet added that because the positions are visible on-chain, they could become targets for buying pressure aimed at triggering liquidations.