Hyperliquid Whales Flipped Short on Bitcoin for the First Time in Seven Months. What Happened the Last Time They Did?

Hyperliquid whales, the exchange’s largest Bitcoin (CRYPTO: BTC) traders, have made a major strategic shift, going net short on Bitcoin for the first time in seven months. According to on-chain analytics firm Glassnode, which reported the shift, these whales moved from a net long position to a net short one, and their current short position is the largest since October 2025.

Bitcoin traded around $75,662 on November 8, down 8% over the past 30 days and just under its lowest 30-day close of $75,775 on November 6. Hyperliquid traders held $612 million in leveraged long positions just a week earlier, on November 2, showing a drastic shift in strategy.

So, are the Hyperliquid whales predicting a further drop in Bitcoin’s price, or just hedging their existing holdings elsewhere?

The Whales’ Last Two Big Calls Went Opposite Ways

Hyperliquid is a decentralized exchange that offers perpetual futures contracts, which track Bitcoin’s price without any expiration date, allowing traders to use borrowed funds for their positions. These trades are recorded on Hyperliquid’s public blockchain, enabling Glassnode to analyze the holdings of significant accounts. A net short position means that positions profiting from a price drop outweigh those profiting from a price rise.

Traders closely monitor these whales due to their substantial financial backing and potential access to better information, though their track record is mixed. For instance, they last went net short in March and then rebuilt their long positions during Bitcoin’s April rally. From April 12 to May 10, Bitcoin surged 16.1%, rising from $70,661 to $82,018 and catching many short traders off guard.

Whales’ long positions also reversed. In May 2026, they reached a high level of net longs, but Bitcoin subsequently dropped by 28.6% to $58,566 by June 30.

However, the whales had more success in October 2025 when they last held a similar level of short exposure. Bitcoin peaked at $126,080 on October 6, 2025, closed the month at $109,567, then slid 22.7% to $84,676 by November 22, 2025. So far, their current short position is paying off, as Glassnode noted that they first went net short on October 27, when Bitcoin closed at $80,801, and Bitcoin has fallen about 6% since.

Are the Whales Just Hedging?

Glassnode tracks only one exchange, leaving gaps in its analysis. A whale might own Bitcoin stored in cold storage, on a centralized exchange, or through an ETF and could short on Hyperliquid to protect their assets without selling, which would still count as a bearish position in Glassnode’s data.

Additionally, most Bitcoin transactions occur on exchange order books that don’t interact with the blockchain, which is why significant whale buying in October did not lead to price increases.

Hyperliquid represents only a small fraction of the total futures market. For context, on November 7, Binance’s BTCUSDT perpetual contracts accounted for 96,471 BTC (approximately $7.3 billion), while Bybit had 69,555 BTC ($5.28 billion) and OKX had 34,497 BTC ($2.62 billion).

Funding rates also provide insight into market sentiment. These rates are the periodic fees that help align perpetual futures prices with the spot price. On November 7, Binance’s funding rate was slightly positive, at 0.0000059, suggesting that the broader market isn’t heavily positioned for a price drop. Thus, the Hyperliquid whales are taking a stance against the rest of the market.

Rising Leverage and ETF Outflows Point to a Directional Call

Open interest data indicates a directional bias among traders. Glassnode reported that Bitcoin’s open interest rose by about $1 billion during a drop in the U.S. session on November 6, with an additional $500 million the following session, while funding rates rose. This shows that traders were opening new leveraged long positions even as prices declined.

If Bitcoin continues to drop, these long positions could face liquidation, an automatic closure of a borrowed position when losses exceed the initial deposit, adding selling pressure in favor of the whales.

Moreover, U.S. spot Bitcoin ETFs reported $1.28 billion in outflows for the week ending November 6, including $430.2 million on November 5 and $411.9 million on November 6. The fund saw inflows on only one of its last five trading days, bringing in $74.6 million on November 4, while total net assets fell from $109.3 billion on October 21 to $95.9 billion.

Investors have also been selling at a loss for an unusually long stretch. Based on current indicators, it seems more likely that the whales are making a directional call rather than merely hedging, although only they know their true intentions.

Will Hyperliquid Whales Be Correct This Time?

At this point, the whales appear to have a stronger stance, especially as ETF investments decline and leveraged longs continue to accumulate beneath them. Their past performance seems to be about even, given the 16.1% rally against them in spring and the 22.7% decline that favored them later in 2025.

A week of net ETF inflows that surpasses the $1.28 billion that departed in the week ending November 6 could undercut the whales’ short.

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