London-based Abraxas Capital, which manages over $4 billion, is running a two-sided Ethereum book on Hyperliquid: a $291 million short position that outweighs a $39 million spot purchase by roughly 7.5 times. The firm earns perpetual funding on the shorts while accumulating spot ETH, a strategy that produced a $21 million single-day profit on Aug. 29.
Abraxas Capital holds $291 million in Ethereum shorts on Hyperliquid against a $39 million spot buy, a roughly 7.5-to-1 bearish tilt on the token.
The two-sided book was flagged by on-chain analysts tracking the London firm's wallets, which frequently rank among Hyperliquid's top traders by volume, exchange data shows.
The short leg, about 120,178 ETH, is the largest single-asset position in a gross book that has at times reached $700 million to $900 million across Ethereum, Bitcoin and Solana. ETH shorts alone have swung between $120 million and $194 million depending on the day. The spot side adds 16,554 ETH to an accumulation pattern that began in August, when Abraxas withdrew 73,872 ETH worth roughly $173 million from Binance over four days.
The structure lets Abraxas collect perpetual funding on the shorts while the spot book hedges a squeeze: if ETH falls, the shorts profit; if it rallies, the spot holdings appreciate. On Aug. 29 the firm booked a $21 million profit in 24 hours from a portfolio holding $472 million in shorts, about 4.4 percent on the short book alone.
Hyperliquid runs on its own Layer-1 blockchain and has become the main venue for on-chain perpetual futures trading. Its native token, HYPE, has drawn attention partly because institutional players such as Abraxas generate outsized volume there. Total short exposure across all assets has at times ballooned to between $598 million and $783 million.
Abraxas has faced unrealized losses on the shorts during volatile stretches even as cumulative profits stayed positive, a risk that grows if Ethereum stages a sharp rally. Because the short leg outweighs the spot buy by about 7.5 times, the firm's net exposure is bearish. If other whales follow that read, ETH could face added selling pressure while funding rates on Hyperliquid stay elevated, and a sudden rally would force the firm to manage losses on the short book even with the spot hedge in place.
This article is for informational purposes only and does not constitute investment advice.
