😁 Bitcoin’s recent rally wiped out around $3B in leveraged shorts, while major firms including Abraxas, Fasanara and Wintermute were spotted holding hundreds of millions in short perps on Hyperliquid.
⌛ But there’s an important detail: these positions appear to be part of cash-and-carry basis trades. The firms hold spot while shorting roughly equivalent perpetual exposure, staying largely market-neutral while collecting funding.
💡 So seeing a huge short position doesn’t automatically mean someone is calling the top. Before following the “smart money”, check the other side of the trade.