Anonymous trader using the handle "watershedpath" has achieved a paper profit of $58 million from what is reportedly the largest-ever long position on the blockchain in $HYPE, as reported by Arkham in a post. However, the trader has withdrawn $18.5 million from this position. This is a rare glimpse into the strategy of one of the largest holders of Hyperliquid's native token.
Who is this "Hype Whale"?
Arkham valued the position in question at $111 million, making it the largest long position on the blockchain in $HYPE. The position appears to have been held for a considerable time. The data intelligence firm stated that the trader has held this position for "almost a full year," which is quite a long period in an industry where perpetual trades are typically held for days or weeks. The $58 million profit is unrealized and could be subject to the price fluctuations of $HYPE.
His profit reached $58 million, and he made the largest long-term investment on the blockchain.
Trader "watershedpath" has been holding a long position in $HYPE for almost a full year. His current assets in $HYPE amount to $111 million, making it the single largest long position on the blockchain.
Instead of selling, he withdrew $18.5 million in margin loans... pic.twitter.com/9oLHzsiagV
– Arkham (@arkham) August 26, 2026
What watershedpath did next drew attention. Instead of taking profit, it, according to the Arkham post, withdrew $18.5 million in margin loans from itself.
Withdrawing Margin Instead of Selling
Utilizing margin from a successful leveraged position allows a trader to take money out without reducing their holdings. However, this comes with increased risk. A smaller margin size makes it more vulnerable, as the margin level at which liquidation occurs becomes lower; consequently, any significant drop in the price of $HYPE would lead to liquidation faster than before. However, the information disclosed by Arkham lacks details such as the liquidation margin and entry level for the trader in question.
The aforementioned position persists against a backdrop of changing dynamics at the Hyperliquid exchange, whose token is $HYPE. This comes amid Hyperliquid's price rising over 46% in the past month and another surge of 16% in the last 7 days. At the time of publication, the price of $HYPE is $82.06. Its 24-hour trading volume is approximately $1.16 billion.
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