TLDR
- ETHMegaBear made $84M by shorting Ethereum on Hyperliquid, using 25x leverage.
- Ethereum’s price drop in January 2026 boosted ETHMegaBear’s unrealized profits.
- ETHMegaBear’s position now includes 30,582 ETH, worth $88.9M.
- The broader market downturn led to $360M in liquidations, affecting leveraged traders.
A trader known as “ETHMegaBear” has earned approximately $84 million by shorting Ethereum (ETH) on Hyperliquid, a decentralized perpetual futures exchange. The trader, who has been active since 2024, uses high leverage to maximize their profits. With Ethereum’s price dropping in January 2026, ETHMegaBear’s position grew in value, resulting in massive unrealized gains.
The #ETHMegaBear(0x20c2) has racked up over $80.9M in profits by shorting $ETH — absolutely insane!
This trader has been shorting $ETH on #Hyperliquid since 2024, consistently using max leverage (previously 50x, now 25x).
He currently holds a 30,582 $ETH($88.9M) short.… pic.twitter.com/wgL2Ba6bHO
— Lookonchain (@lookonchain) January 29, 2026
ETHMegaBear started shorting Ethereum on Hyperliquid in 2024, initially using 50x leverage and later reducing the leverage to 25x. At present, ETHMegaBear holds a short position of 30,582 ETH, valued at roughly $88.9 million. The market downturn, which saw Ethereum’s price fall from over $2,900 to around $2,800, significantly contributed to the trader’s profits.
How High Leverage Contributed to ETHMegaBear’s Profits
Leverage is a key factor in amplifying profits for traders who bet against an asset’s price movement. In the case of ETHMegaBear, their use of high leverage increased their exposure to the market, allowing them to profit more from price declines. The trader initially employed 50x leverage, meaning their position size was 50 times larger than their collateral. Later, they reduced the leverage to 25x.
Despite the market’s volatility, this strategy has paid off, especially as Ethereum experienced significant price swings. When Ethereum’s price dipped, the short position grew more valuable, leading to substantial unrealized gains. The volatility of the crypto market often provides traders like ETHMegaBear with opportunities to profit, especially when the broader market is facing a downturn.
Ethereum’s Price Decline Fuels Profit Growth
Ethereum’s price has been in decline recently, partly due to a broader market correction in January 2026. On January 29, 2026, Ethereum’s price dropped from above $2,900 to around $2,800, contributing to ETHMegaBear’s unrealized profit increase.
This decline in Ethereum’s value has been part of a larger downturn affecting the cryptocurrency market. Bitcoin also experienced a drop, falling below $85,000 during this period, which led to a significant amount of liquidations.
During the price drop, approximately $360 million in leveraged positions were liquidated across the market. This indicates how the crypto market can be highly sensitive to price shifts, especially for leveraged positions. Traders using leverage face both increased risk and the potential for higher rewards, as shown by ETHMegaBear’s success.
The Role of Hyperliquid in ETHMegaBear’s Strategy
Hyperliquid, the decentralized exchange where ETHMegaBear has built this short position, plays a central role in the trader’s strategy. As a decentralized exchange, Hyperliquid allows for the use of high leverage without the traditional risks and restrictions imposed by centralized exchanges. This makes it an attractive platform for traders who want to execute highly leveraged trades in a decentralized environment.
On Hyperliquid, traders like ETHMegaBear can open long or short positions on Ethereum and other cryptocurrencies. The platform also offers perpetual futures contracts, which allow traders to hold positions for extended periods, making it ideal for those seeking to capitalize on price movements over time. This flexibility, combined with high leverage, provides significant opportunities for traders to earn substantial profits in volatile markets.
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