ChainCatcher report, according to TradingBeats (formerly Hyperinsight), the whale address starting with 0xf17 began simultaneously selling HYPE spot and buying to close an equivalent amount of perpetual short positions today, planning to gradually exit its carry trade position. Previously, this address held HYPE spot and perpetual short positions in a nearly 1:1 ratio, profiting from positive funding rates through hedging price fluctuations. Based on the pre-reduction position size of approximately 146,800 HYPE, both legs have now been reduced to around 107,900 HYPE each, a decrease of nearly 39,000 HYPE per leg, or about 26.5%. Currently active TWAP orders are scheduled to process a combined total of 90,000 HYPE: approximately 33,200 HYPE have been sold on the spot side, generating about $1.8 million in volume; approximately 33,100 HYPE short positions have been closed on the derivatives side, with a volume of about $1.795 million. Including previously completed orders, the total reduction in perpetual short positions during this round amounts to approximately 39,000 HYPE. The current notional value of both spot and short positions is approximately $5.87 million each, with a combined total size of about $11.74 million—down by approximately $4.24 million from pre-reduction levels. As the whale unwinds its position, HYPE’s carry trade yield has also declined from its recent highs. Daily statistics show: HYPE’s cumulative funding rate fell from +0.0279% on August 1 to +0.02227% on August 3, a decrease of approximately 20.2%; over the last four hours, the cumulative funding rate also dropped by 19.1% compared to the prior four-hour period. Estimating based on current short position size, the whale’s daily gross funding income has decreased from approximately $1,638 to $1,308. Weekly statistics show: cumulative funding rates from July 28 to August 3 totaled approximately +0.17803%, down 16.9% from the weekly high of +0.21425% recorded from July 14 to July 20. The current HYPE funding rate is +0.0013%, implying an estimated annualized yield of approximately 10.9%.
HYPE Arbitrage Space Narrows as Whale Exits $11M Hedging Position
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Summary
Whale activity in HYPE trading has intensified as a major player with address 0xf17 begins unwinding a $11.74 million hedging position. The whale is selling 90,000 HYPE via TWAP orders, having already closed $1.795 million in short contracts and sold $1.8 million in spot HYPE. Previously, the strategy involved holding HYPE spot and perpetual short positions in a 1:1 ratio to capture positive funding rates. The total position value has declined from $16 million, while the weekly funding rate has dropped by 16.9%.
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