Whale liquidation imminent? The reverse attacker counterattacks with a $21 million short on Hyperliquid using ASTER

From CZ Endorsement to Crash: The Perfect Market Sentiment Hunt

In the crypto market, endorsements from big influencers often trigger crazy rallies. However, a clever whale trader went against the trend — after Binance founder CZ endorsed ASTER, this trader did not follow the hype to go long, but instead precisely shorted, ultimately making over $21 million. This “counterattack” not only demonstrates the sharp instinct of top traders but also exposes the current market’s structural risks.

As an emerging force in the perpetual decentralized exchange sector, ASTER once surged to a high of $1.20 due to celebrity endorsements. But the price quickly fell back, dropping to a low of $0.83, a 30% decline. According to the latest data, ASTER’s current price has fallen to $0.71, with a 24-hour decrease of -4.20%, and a circulating market cap of about $1.17 billion. This rapid correction created a perfect profit opportunity for short sellers.

The Whale’s Precise Sniping: 3x Leverage, $48 Million Short Bet

This “anti-CZ whale” is not blindly betting. On-chain data tracking shows that through two wallets, it has accumulated a short position in ASTER exceeding $48 million, with only 3x leverage, resulting in an unrealized profit of $21 million. This reflects not luck but a precise grasp of market sentiment cycles and hype points.

More notably, this whale’s strategy is not limited to shorting ASTER — it also has long and short positions across major tokens like DOGE, ETH, XRP, PEPE, etc. Currently, DOGE is priced at $0.14 (down -5.38% in 24h), ETH at $3.29K (down -1.77%), XRP at $2.06 (down -3.58%). This multi-asset hedging approach reduces the risk of single bets and demonstrates the risk management mindset of seasoned whales.

Why Hyperliquid Has Become a Whale Paradise

As a leading platform in the perpetual DEX sector, what is Hyperliquid’s core competitive advantage in attracting top traders? First is transparency — real-time tracking of whale activity, leverage ratios, funding rates, liquidation prices, and other tools are fully public, allowing traders to monitor market movements as if watching a “live broadcast.” Second is high liquidity and stability, ensuring large positions can enter and exit precisely.

However, ASTER is eating into Hyperliquid’s market share. As a new competitor, ASTER quickly gained popularity with features like 1001x leverage, multi-chain support, hidden orders, and more. This “battle of new vs. old platforms” is a microcosm of the rapid evolution in the perpetual DEX track.

Token Concentration Crisis: 89.63% Controlled by Top 10 Whales

The most alarming issue is ASTER’s ownership structure. On-chain data shows that the top 10 addresses hold up to 89.63% of the tokens — in other words, over 90% of the tokens are controlled by a few whales. Six major wallets control over 96% of the total supply, giving these whales almost unlimited “dump power.”

This extreme token concentration makes retail investors the de facto “bagholders.” When whales pump to attract retail entry, they can just as easily dump and leave. The “anti-CZ whale” exploited this market structure, bottom-fishing for short positions and profiting from the spread created by whale dumps.

Leverage Trading: Infinite Profits or Liquidation Hell

While the success story of the “anti-CZ whale” is impressive, the risks behind it are equally startling. 3x leverage seems moderate, but on highly volatile new tokens, a 10% adverse move can trigger forced liquidation. If this whale’s judgment is wrong, losses could multiply many times over.

For retail traders, blindly following high-leverage trades is akin to playing with fire. Hyperliquid’s tracking tools are useful but can also become a breeding ground for “herd mentality” — seeing top whales short, retail traders follow suit, ultimately becoming victims of collective liquidation.

The Double-Edged Sword of Community Transparency

Hyperliquid’s public dashboard indeed enhances market transparency. Traders can see real-time data on funding rates, liquidation prices, large positions, and more. This should be positive, but it also fosters a “follow-the-leader” culture — many retail traders blindly mimic whale trades, further increasing market concentration risks.

Regulatory Storms on the Horizon?

As ASTER and Hyperliquid grow, regulators’ attention will likely intensify. Excessive token concentration, high leverage risks, and market manipulation suspicions could become future regulatory targets. For traders, today’s “profit paradise” might turn into tomorrow’s “forbidden zone.”

Lessons and Warnings

The story of the “anti-CZ whale” should not be simply seen as a “success case,” but as a mirror reflecting deeper market issues. It tells us: celebrity endorsements do not guarantee good fundamentals, innovative platforms are not inherently safe assets, and high leverage does not ensure reliable returns. In crypto markets, understanding sentiment cycles and structural risks is often more important than chasing price swings. For ordinary traders, recognizing these risks and building their own risk management systems is the key to surviving longer in this market.