The largest short whale of Hyperliquid turns to go long on PEPE, the strategic signal behind the 4.6 million floating profit

The largest BTC short whale address 0x94d37 on Hyperliquid has recently taken new action. This address, which once held a position of $120 million shorting mainstream coins, recently closed its PEPE long position. Although it only made a profit of $9,335, the current unrealized gain of $4.6 million in its account reflects deeper market changes. Behind this shift is a subtle adjustment in market structure.

From Extreme Shorts to Flexible Longs

The transformation of the whale’s identity

The address 0x94d37 was well-known during the Hyperliquid period. It once held a position of $120 million, becoming the platform’s largest BTC short and consistently betting on Bitcoin’s decline. Such an extreme short stance usually indicates a strong view on the market trend.

But now, this former “dead short, long long” is going long on PEPE. This is not just a simple change in stance but a strategic flexible adjustment. According to quick news, during the period when the strategy continuously increased its BTC holdings, this address opened short positions on BTC, ETH, and other mainstream coins. In other words, its short positions are targeted—betting on a pullback during institutional accumulation phases.

The significance of this PEPE operation

Closing a $9,335 PEPE long position is a small move, but the timing is noteworthy. The current market performance of PEPE is:

• 24-hour increase of 0.91%
• 7-day decrease of 15.21%
• 30-day increase of 35.75%
• Market cap of $252 million

PEPE experienced a clear short-term correction, but its monthly trend remains upward. The whale taking profit at this point indicates it recognized a short-term peak and promptly took profits. This reflects a refined trading ability—neither blindly bullish nor extremely bearish, but adjusting flexibly based on market volatility.

Deep Signals in Market Structure

The divergence of funds between institutions and retail investors

Related information shows that MicroStrategy (Strategy) continues to accumulate Bitcoin, currently holding 673,783 BTC, with an average purchase price of about $75,024. This sustained institutional-level accumulation has pushed up Bitcoin’s valuation center.

However, this also leads to a phenomenon: funds are concentrating in Bitcoin, reducing downward momentum. Assets like Ethereum and PEPE are performing relatively lagging. The whale’s shift from extreme shorting to flexible operations may be an adaptation to this new market structure—no longer simply opposing the trend of institutional accumulation but seeking opportunities amid volatility.

Insights from unrealized gains

The $4.6 million unrealized gain in the account—where does this figure come from? Although the quick news did not disclose detailed information, combined with its historical holdings, this number likely reflects that: short positions indeed incurred losses during the market rise, but through flexible long positions and other trades, the overall account remains profitable.

This shows that even an extreme short position, when facing an upward trend led by institutions, is adjusting its strategy to adapt to the market.

Summary

This quick news may seem like a small transaction record, but it reflects several noteworthy phenomena:

First, the logic of on-chain whale operations is changing. From a one-way extreme short to a trader who adjusts flexibly according to market rhythm.

Second, the upward trend formed by institutional accumulation of BTC has become the main market theme, and even former opponents are adapting to this new pattern.

Third, although assets like PEPE and other altcoins are lagging overall, there are still trading opportunities amid short-term volatility. The whale’s closing operation may indicate that PEPE’s volatility will continue in the short term.

For market participants, the key is not to guess whether the next move is up or down, but to understand the flow of funds and the strategic shifts of whales—these often provide better signals of trend than purely technical analysis.