Two high-profile cryptocurrency whales have executed dramatic leveraged trades, underscoring the extreme risk and reward environment of on-chain derivatives markets. According to on-chain data reported by BitcoinWorld on May 22, 2026, the anonymous whale address ‘1011’—infamous for a prior $230 million liquidation event—has opened a 3x leveraged short position worth $1.26 million on privacy coin Zcash (ZEC). This bearish move comes even as the same wallet maintains a massive $39.21 million long on Bitcoin (BTC) with 5x leverage and a $2.49 million spot holding in Hyperliquid (HYPE).
The whale’s return to leveraged trading after such a catastrophic loss highlights a continued high-risk strategy. The ZEC short, while modest relative to the portfolio, could still impact the relatively low-liquidity token. A price rise of roughly 33% would fully liquidate the position, potentially triggering a short squeeze. Analysts note that on-chain tracking enables rare transparency into the strategies of major players, serving as both a warning and a case study for retail traders.
In a separate but equally audacious move, on-chain analytics platform Lookonchain identified a different whale (wallet 0x8652) that recently banked $7.5 million in profit from leveraged longs on ZEC and HYPE over just four days. Flush with those gains, the same trader opened a staggering $38.63 million long position on Ethereum (ETH) with 25x leverage. The average entry price is $2,133.19, and the liquidation threshold sits at $1,949.67—a drop of only 8.6% from entry. This extreme leverage puts the position at risk of being wiped out by even moderate market volatility, yet it signals strong bullish conviction from a previously successful trader.
The combined whale activity creates a tense backdrop for ZEC and ETH. For ZEC, the $1.26 million short adds bearish pressure, while the ETH long could amplify upward momentum unless sudden selling pushes the price toward the liquidation zone. Both trades illustrate the outsized influence of crypto whales and the brutal reality of leverage, where seven-figure profits or losses can materialize in minutes.
