A Pseudonymous trader, ‘watershedpath’, is sitting on a $58 million paper profit from his largest-ever long position in $HYPE on-chain, Arkham revealed in a post. However, the trader withdrew $18.5 million from the position. It is a rare insight into the strategy of one of the largest holders of Hyperliquid’s native token.
Who is this $HYPE whale?
Arkham estimated the position in question at $111 million, which makes it the largest long on $HYPE on-chain. It looks like the position has been held for a while now. The on-chain data firm stated that the trader holds this position “for almost a whole YEAR,” which is quite a long time frame in an industry where perpetual trades are held for several days or weeks. The $58 million profit is not realized and can be affected by the price movements of $HYPE.
He’s up $58M with the largest $HYPE long on-chain.
Trader “watershedpath” has been long $HYPE for almost a whole YEAR. He’s currently holding $111M of $HYPE exposure – making his the largest single long position on-chain.
Instead of selling, he’s withdrawn $18.5M of margin in the… pic.twitter.com/9oLHzsiagV
— Arkham (@arkham) August 26, 2026
The detail that caught the eye is what watershedpath chose to do next. Rather than realize his gain, he withdrew $18.5 million of margin in the process, according to the Arkham Post.
Withdrawing margin instead of selling
Drawing margin out of a successful leveraged position enables a trader to make money without cutting down his holding. However, there is some risk linked to the move. A smaller margin leaves him vulnerable as the margin level at which liquidation occurs becomes lower; hence, any significant dip in the price of $HYPE will lead to faster liquidation than would be the case before. However, the information disclosed by Arkham does not include details such as the liquidation margin and entry level of the trader in question.
The above-mentioned position is held against a background of changing dynamics in Hyperliquid, the exchange whose token is $HYPE. This comes as the Hyperliquid price surged by more than 46% over the last month. It bagged another surge of 16% in the last 7 days. $HYPE is trading at a price of $82.06 at the press time. Its 24-hour trading volume stands at around 1.16 billion.
