Four newly created wallets put up 1 million USDC to open a 40x Bitcoin short ahead of the selloff

AI Market Summary

Lookonchain flagged four newly created addresses depositing 1M USDC to Hyperliquid to open 40x leveraged BTC shorts (~$12.5M notional) shortly before a market drop. The timing and leverage underscore elevated speculative positioning and potential informed flow, which can amplify short-term volatility via liquidations and hedging feedback loops, particularly in perpetuals-linked liquidity conditions.

Impact level

● Medium

Affected assets

BTC/USDT-1.52%

AI Insight · BTC/USDTAI Insight

▼ Bearish

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Oct. 7 — BlockBeats reported that Lookonchain data showed four newly created addresses deposited 1 million USDC into Hyperliquid before this morning's market decline. The funds were used to open 40x leveraged short positions in Bitcoin, with a total position size of $12.5 million.

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