Ethereum trader gains $208M after $3.5M loss on Hyperliquid, holding $125M in stETH and $350M in USDC, using OTC trades.
An anonymous Ethereum trader has gained over $208 million in total profits after years of swing trading on Hyperliquid.
Despite suffering a $3.5 million loss on a recent trade, the trader’s long-term performance remains positive.
Since late 2023, the trader has focused primarily on over-the-counter (OTC) trades, which offer more privacy and control. The trader’s current holdings include $125 million in staked ETH (stETH) and $350.5 million in USDC.
Hyperliquid’s High Leverage and Risk-Taking Environment
The trader’s activity took place on Hyperliquid, a decentralized perpetual exchange.
Hyperliquid offers leverage up to 50x, allowing traders to amplify both gains and losses.
Despite a major $3.5 million loss, the trader has maintained a net profit of over $208 million.
This high leverage environment attracts high-risk traders looking for large, short-term gains.
THIS GUY IS UP OVER $200M ON $ETH
The trader who lost $3.5M on Hyperliquid in a few hours – is actually UP $208M all time, after only trading ETH for the past 2 years.
This whale has been swing trading ETH since the end of 2023, mainly using OTC. He currently holds $125M of… https://t.co/IPPWTEE4i2 pic.twitter.com/3IFP2t6VeP
— Arkham (@arkham) January 8, 2026
The platform is built on its own Layer 1 blockchain, providing lower fees and faster transactions.
Hyperliquid also offers zero gas fees, which makes it attractive for high-volume traders.
The trader’s reliance on OTC markets suggests a preference for executing large trades privately, reducing the market impact of their transactions.
This combination of high leverage and low fees can result in large gains but also exposes traders to significant risks.
However, this trader has managed to turn losses into overall profits, demonstrating the high-reward potential of trading on decentralized exchanges like Hyperliquid.
Swing Trading Strategy and ETH’s Volatile Market Dynamics
Since late 2023, the trader has focused on swing trading Ethereum (ETH), capitalizing on its price fluctuations.
Swing trading involves holding assets for short to medium periods, typically ranging from days to weeks.
The trader’s strategy appears to involve anticipating price movements based on technical and market trends.
The use of OTC markets helps execute these trades without causing large shifts in the market price.
Additionally, the trader’s strategy of using leverage means they are able to amplify their exposure to Ethereum’s volatility.
The recent $3.5 million loss does not overshadow the trader’s ability to profit from long-term price swings in the ETH market.
The ability to recover from such a significant loss is a testament to the trader’s resilience and market knowledge.
It also highlights the potential for high returns in volatile markets, especially in the DeFi space where opportunities for profit exist in rapid price shifts.
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Building a Diversified Portfolio with Staked ETH and USDC
The trader’s portfolio includes $125 million in staked ETH (stETH) and $350.5 million in USDC stablecoin.
This large balance reflects their confidence in both Ethereum’s long-term prospects and the stability of USDC.
Staking ETH provides additional rewards, which helps further increase the trader’s overall value over time.
Holding USDC alongside ETH allows the trader to manage risks while still taking advantage of Ethereum’s volatility.
The combination of stETH and USDC gives the trader flexibility, allowing them to respond to changes in the market.
This diversified approach offers a balance of risk and reward, ensuring that the trader is well-positioned for future market movements.
Despite the volatile nature of crypto markets, the trader’s substantial gains demonstrate the potential rewards.
Their success on Hyperliquid shows that experienced traders can achieve significant profits through strategic use of leverage and market timing.