From Profit to Pain: Trader on Hyperliquid Loses $716K After Doubling ETH Short Worth $26M

Hyperliquid Trader Loses $26M Ethereum Short Profit, Ends Up $716K in the Red

A high-stakes Ethereum (ETH) trader on Hyperliquid has turned what was once a massive profit into a substantial loss after doubling down on a risky short position.

Data from Lookonchain shows wallet 0xCB92 initially opened a 50,000 ETH short, riding it to an impressive $26 million in unrealized gains at its peak.

Instead of securing profits, the trader increased their exposure by adding another 10,000 ETH to the short position—even as ETH’s price continued rising. Because short positions benefit from falling prices, the market’s upward move quickly put the trade underwater.

In the end, the entire position was liquidated, leaving the trader with a realized loss of $716,000, Lookonchain confirmed on Thursday.

Although it’s possible the short was intended as a hedge against other holdings, no additional positions were visible in the tracked wallet, pointing to a purely speculative bet gone wrong.

Flashbacks to James Wynn’s Hyperliquid Saga

The trader’s sharp reversal has drawn comparisons to the dramatic episodes involving James Wynn, who became infamous for his outsized bets on Hyperliquid earlier this year.

Back in May 2025, Wynn amassed a record $1.25 billion long position in bitcoin (BTC) at an average entry of $108,243. But his bet crumbled when BTC slipped below $105,000 following President Trump’s tariff announcements targeting European Union exports.

Wynn suffered several liquidations, including a 527 BTC position worth more than $55 million, and another 421 BTC stake valued around $44 million. Altogether, he lost over $100 million in just days, prompting speculation over whether his approach was high-risk trading or reckless gambling.

Since that collapse, Wynn has steered clear of similarly massive positions. Now, some traders are wondering whether wallet 0xCB92 could become Hyperliquid’s next high-profile risk taker.