Made 15 million USD in 5 days by multiplying 6 times, why did the whale's leveraged short succeed

A certain whale address 0xD835 turned $3 million USDC into $18.35 million in just 5 days, realizing a profit of $15.35 million, with a profit multiple of approximately 6 times. This operation occurred during a downturn in the crypto market, where the whale successfully profited by shorting with full leverage and continuously adding to their position. In contrast, other whales during the same period experienced losses in similar operations. This case warrants analysis.

Details of the Whale’s Operation

Strategy Execution Process

According to Lookonchain tracking, the logic behind address 0xD835’s actions is relatively clear:

• Initial Setup: Deposited $3 million USDC into Hyperliquid 5 days ago
• Method: Full leverage short position with a continuous add strategy
• Profit Source: As the market declined, floating gains steadily increased
• Current Status: Unrealized gains soared to $15.35 million, total assets increased to $18.35 million

Current Position Size

The whale’s holdings are already quite large, with a total market value exceeding $300 million:

Market Context: Opportunities in a Downtrend

This successful short operation occurred during a clear downward window. According to the latest market data:

• BTC 24-hour decline: 4.08%
• BTC 7-day decline: 6.75%
• This decline is sufficient in the short term to generate significant gains from short positions

The whale’s 5-day operation cycle precisely captured this decline, amplifying gains through continuous adding. This suggests the whale may have anticipated the market direction early or responded quickly at the onset of the decline.

Comparative Perspective: Why Did This Whale Succeed?

Performance of other whales during the same period contrasts sharply:

Failures

Huang Licheng (Machi Big Brother) faced 5 liquidations during the same period, with total losses expanding to $24.18 million, liquidation price at $2,991.43. This indicates his long or leveraged positions were misjudged in direction.

Successes

Polymarket whale beachboy4 profited $10.5 million over 2 days through 5 prediction trades, offsetting a previous loss of $6.8 million. The difference from 0xD835 lies in the trading instruments and leverage methods, but both demonstrate the ability of whales to operate effectively within specific time windows.

Market Implications

Significance of Whale Actions

The large-scale shorting by 0xD835 may reflect the following signals:

• The whale has a clear view of the short-term market trend
• Full leverage operation indicates high confidence
• Continuous adding shows unwavering confidence during the decline

Such on-chain whale actions are often focal points for market participants, as their capital size and informational advantage may signal market direction.

Leverage Trading as a Double-Edged Sword

This case also reminds us of the dual nature of leverage trading. While 0xD835 earned $15.35 million, Huang Licheng lost $24.18 million using leverage. The key difference lies in the judgment of direction and risk management.

Summary

A 6-fold increase in 5 days is eye-catching, but behind it is the whale’s precise market judgment and timely position addition. In a clear downtrend, full leverage shorting with continuous adding can indeed generate substantial profits. Compared to other whales’ losses during the same period, 0xD835’s success is more about correct operational direction than luck. This case highlights that on-chain whale actions are worth monitoring, but understanding the logic behind their operations is even more important.