A new wallet address received a transfer of 3,100 ETH directly from privacy protocol Tornado Cash’s contract on November 8, 2026. Rather than holding the asset in its native coin, the wallet owner immediately sold all 3,100 ETH, converting it into stablecoins worth 6.92 million USDC.
On-chain data tracker Lookonchain detected the 6.92 million USDC inflow deposited into Hyperliquid, a decentralized perpetual exchange (DEX). Without hesitation, the wallet owner deployed the entire stablecoin balance as collateral margin to open high-risk derivative contracts.
Splitting Capital Across Opposite Directions
On the Hyperliquid platform, the wallet opened a 20x leveraged long position on 169.47 Bitcoin (BTC). The 20x leverage facility brought the notional value of this Bitcoin buy contract to approximately $12.84 million. Long contracts yield profits when Bitcoin’s market price rises.
Simultaneously, the identical wallet executed a 20x leveraged short position on 5,740 Ethereum (ETH). The notional value of this short position stood at $12.83 million, nearly matching the value of the Bitcoin contract opened on the other side. The short position is designed to generate profits when Ethereum’s price falls.
Combined, the total trading exposure of both contracts reached $25.67 million. Utilizing 20x leverage allowed the 6.92 million USDC collateral deposit to drive significantly larger contracts, while also carrying the consequence of a narrow liquidation buffer if price movements defy expectations.
Pairs Trading Strategy Amid Market Pressure
This trading maneuver represents a form of high-leverage pairs trading strategy. Through this position, the trader is betting on the strengthening of the Bitcoin-to-Ethereum price ratio (BTC/ETH). Profits are generated if Bitcoin’s price performance outpaces Ethereum’s, regardless of whether the broader market is rallying or declining.
The timing of the position opening coincided with sluggish market conditions. Bitcoin’s price was held below the $76,000 range when the orders were executed, while most altcoins posted sharp weekly declines. The entry into a short position on 5,740 ETH reflects continued speculation on altcoin weakness across the open market.
Public on-chain data does not reveal the identity of the wallet owner or the reasoning behind the fund withdrawal from Tornado Cash. For derivatives market participants, this $25.67 million position movement demonstrates how large capital operates on decentralized exchanges: splitting risk between Bitcoin and Ethereum with directional bets while key asset prices have yet to break out of their consolidation phase.
Reported by @lookonchain on X.
Read also: How to Read Candlesticks for Beginners
Read also: Crypto ETF Outflows Hit $530 Million in a Day - AMINA Bank Says Rally Needs AI Stock Capital
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
