Market Makers Boost BTC and ETH Shorts on Hyperliquid to $603M, Likely as Spot Hedge

BitcoinWorld Market Makers Boost BTC and ETH Shorts on Hyperliquid to $603M, Likely as Spot Hedge Three prominent crypto market-making firms—Abraxas Capital, Pasaana Capital, and Wintermute—have collectively increased their short positions in Bitcoin and Ethereum on Hyperliquid to $603 million, according to a report by Crypto Briefing.

The firms are currently sitting on approximately $75 million in unrealized losses, a figure that has grown as the market rallied.

Despite the adverse price movement and a wave of forced liquidations among short sellers, these firms have chosen to expand their positions rather than reduce them. This behavior suggests the shorts may serve a strategic purpose beyond directional speculation.

Hedging or Speculation? Interpreting the Move Market makers often use short positions to hedge their spot inventory. By holding a short derivative position, they can offset potential losses from a decline in the value of their underlying assets.