Tornado Cash-Funded Wallet Opens $26.2 Million Bitcoin Long and Ether Short on Hyperliquid
A cryptocurrency wallet funded with 3,100 ETH withdrawn from Tornado Cash opened approximately $26.2 million in paired positions on Hyperliquid on November 7, taking a long position in Bitcoin and a short position in Ether. The trade gives the account exposure to the relative performance of the two largest cryptocurrencies rather than simply betting on the broader market's direction.
At approximately 8:48 p.m. ET, trading tracker Hyperdash showed the wallet holding a 172.94 BTC long position and an approximately 5,860 ETH short position. Each side was valued at roughly $13.1 million, with both positions displaying 20x leverage settings.
Wallet Moves 3,100 ETH Through Tornado Cash and CoW Swap
Ethereum blockchain records showed 31 separate withdrawals of 100 ETH each from Tornado Cash's 100-ETH pool to the wallet on November 7. The address subsequently routed the combined 3,100 ETH through four CoW Swap orders, receiving approximately 6.92 million USDC.
The wallet then transferred the USDC through Circle's Cross-Chain Transfer Protocol (CCTP). Data from Hypurrscan recorded a credit of 6.92 million USDC to the same address on Hyperliquid, where the paired positions were established.
Onchain analytics account Lookonchain drew attention to the trade at approximately 8:40 p.m. ET. Its report described a 169.47 BTC long position against a 5,740 ETH short and referred to the trader as a "hacker." However, the post did not identify a specific theft connected to the wallet. Withdrawals from Tornado Cash alone do not establish that the funds were stolen.
Position Leverage and Hyperliquid Market Exposure
Although both positions displayed 20x leverage settings, Hyperdash reported that the account's overall leverage stood at 3.79 times against approximately $6.91 million in equity.
Hyperliquid's margin framework uses the selected leverage setting to calculate the initial collateral required to open a position. Under cross-margin arrangements, multiple positions can share the account's available collateral.
The trade's nearly equal dollar exposure on both sides means its relative performance depends primarily on whether Bitcoin outperforms Ether. Its final result can also be affected by trading costs and funding payments.
For comparison, Hyperliquid's trading interface showed approximately $3.15 billion in Bitcoin open interest and $2.18 billion in Ether open interest in snapshots taken around 8:47 p.m. ET. Each side of the wallet's position, at roughly $13.1 million, was considerably smaller than the respective market-wide figures.
Hyperliquid perpetual futures track the prices of underlying assets without a fixed expiration date, according to The Defiant's guide to the platform.
source: thedefiant
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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