Abraxas Capital buys $32M ETH spot to hedge $353M Hyperliquid short

Abraxas Capital bought 13,000 ETH ($32.39 million) in the spot market on Sept. 8 to hedge a 141,180 ETH short position on Hyperliquid valued at $353.27 million.

Lookonchain flagged the transaction, describing it as another spot purchase made specifically to offset the firm's open short on the decentralized derivatives platform.

The 13,000 ETH purchase equals just over 9 percent of the short position by token count, executed at an implied price near $2,491 per ETH. Subtracting the hedge leaves roughly 128,180 ETH of net short exposure based solely on positions disclosed by Lookonchain.

The hedge gives Abraxas offsetting exposure in both directions — the short profits if Ether falls, while the spot position gains if the token rises. The firm's decision to keep the short open rather than close it suggests it maintains a bearish view on ETH, though the repeated spot purchases indicate it is managing liquidation risk on the leveraged position.

Hyperliquid whale books carry billions in combined exposure

Abraxas's latest hedge comes as Hyperliquid whale accounts have held several billion dollars in combined positions this year. In May, whale exposure on the platform reached $4.039 billion, split between $1.981 billion in longs and $2.058 billion in shorts, according to data cited by crypto.news. A separate reading in April put combined whale positions at $3.4 billion.

The investment manager has executed large ETH moves before. In May 2025, Abraxas withdrew 138,511 ETH worth roughly $297 million from centralized exchanges over two days during a sharp ETH rally, then added another 33,482 ETH for $84.7 million. Lookonchain data at the time showed the firm had accumulated 211,030 ETH over six days, worth more than $477 million.

ETH stalls below $2,500 as ETF inflows persist

Ether traded near $2,481 on Sept. 8, down about 1.2 percent over 24 hours, after repeatedly failing to hold above $2,500. The token fell to an intraday low of $2,356 on Sept. 2 before recovering toward the $2,500 area. Liquidation data showed leveraged positions clustered around $2,430 below the market and between $2,540 and $2,600 above it.

Institutional demand for spot Ether has remained active. U.S. spot Ethereum ETFs recorded $225.8 million in net inflows on Aug. 28, extending a nine-session buying streak to $1.42 billion. BlackRock's ETHA accounted for $1.02 billion of those inflows.

The large open short on Hyperliquid carries liquidation risk that could drive cascading ETH price moves depending on market direction. If ETH rallies toward the $2,540-$2,600 zone where leveraged positions cluster, Abraxas's short could face margin pressure, potentially forcing additional spot purchases or a partial close.

This article is for informational purposes only and does not constitute investment advice.