Tornado Cash Whale Opens 20x Bitcoin Long Against Ether Short on Hyperliquid

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Tornado Cash Whale Opens 20x Bitcoin Long Against Ether Short on Hyperliquid

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Bitcoin Ethereum

An anonymous Tornado Cash whale sent $7 million to Hyperliquid and opened a Bitcoin long against an Ether short. The position runs on 20x leverage, and blockchain researchers caution that the origin of the funds remains unproven.

An anonymous Tornado Cash whale sent $7 million to Hyperliquid to open a large long on Bitcoin this morning. According to Lookonchain and Onchain Lens, the wallet went in with 20x leverage, planning to profit from Bitcoin outperforming Ether.

The move stands out because large holders usually run funds through mixers to move capital privately or to prepare to cash out. Here, the funds had previously been tracked to a chain of addresses belonging to the hackers who drained Drift Protocol of $290 million in April 2026.

How the pair trade is built

The wallet started as a brand-new address that withdrew 3,100 ETH from Tornado Cash, then swapped all of the Ether through CoW Swap for $6.92 million in USDC. The money then moved to Hyperliquid as collateral.

On the exchange, the whale split the collateral in half and turned on 20x cross leverage. The result was a position worth about $26 million: a Bitcoin long of $12.84 million at an entry price of $75,762.2 and an Ethereum short of 5,740 ETH worth $12.83 million.

So far, the bet is working. Bitcoin is holding near local highs, and the gain on the BTC long fully covers the drawdown from the altcoin short. The wallet also earns funding on the ETH short, according to the report.

Risks and open questions

The trade profits if Bitcoin rises faster than Ether, or if Ether falls harder than Bitcoin in a broad market crash. But 20x leverage is always a high risk. If Ethereum rises while Bitcoin stays stuck in a range, Hyperliquid's cross-margin system could force-close the orders and the investor would lose the entire $6.92 million. The liquidation price is set at $37,014.09 for BTC and $3,343.60 for ETH.

Some blockchain researchers warn against jumping to conclusions about where the funds came from. There is still no direct evidence, because Tornado Cash covers its tracks well and the link to specific hacks rests only on circumstantial matches in volume.

Source: U.Today

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