Qwatio Suffers $3.7 Million Loss on Hyperliquid as Bitcoin and Ethereum Shorts Go Wrong

A trader operating under the name Qwatio on Hyperliquid has taken a significant hit, losing nearly $3.7 million this week after placing extreme short bets against bitcoin (BTC) and ether (ETH), blockchain data shows.

Currently, Qwatio maintains a 40x leveraged short position on BTC and a 25x leveraged short on ETH.

During the past weekend, the trader endured five liquidations as BTC and ETH surged to $108,200.53 and $2,557.21, respectively.

Qwatio is well-known for engaging in high-stakes trades, similar to strategies employed by James Wynn. Earlier this year, the trader was heavily positioned on the long side for both BTC and ETH, signaling a stark shift in strategy toward aggressive shorting as market volatility escalates.

The trader first captured attention in early 2025 after opening $200 million worth of BTC and ETH positions at 50x leverage just hours before U.S. President Donald Trump announced an executive order establishing a crypto reserve—a catalyst that sent digital asset prices soaring.

Beyond bitcoin and ether, Qwatio was also an early participant in the Melania memecoin during its initial release earlier this year.

Meanwhile, CoinGlass data indicates broader turbulence in the crypto market, with about $50 million in ETH short positions and $31 million in BTC shorts wiped out over the last 24 hours, underscoring the heightened risks in crypto derivatives trading.