Abraxas Capital Takes $783M Short Positions on Hyperliquid

Abraxas Capital, a London-based digital asset firm managing over $4 billion, has taken large short positions totaling around $783 million on Hyperliquid. The tokens include major assets like ETH, Bitcoin, HYPE, and Solana.

To hedge these short positions, Abraxas withdrew $173 million worth of Ethereum from Binance. This strategy focuses on funding rate arbitrage, profiting from the difference between perpetual futures and spot prices rather than betting on price drops.

Abraxas has historically realized over $300 million in profits and continues to adjust its exposure based on market conditions. Despite an unrealized loss of $80.8 million currently, the firm maintains a nearly balanced book through spot purchases.