According to @ai_9684xtpa, the top BTC short on Hyperliquid has a remaining $138 million short position now showing an unrealized loss of $5.526 million after a swift rebound; the address and metrics are viewable on the hyperbot.network trader page for 0x5D2F4460Ac3514AdA79f5D9838916E508Ab39Bb7, indicating elevated drawdown pressure for the short side, source: @ai_9684xtpa on X; hyperbot.network/trader/0x5D2F4460Ac3514AdA79f5D9838916E508Ab39Bb7. According to @ai_9684xtpa, the whale has shorted BTC four times since March 2025 and realized profits on 40 percent of the position during the Oct 11 flash crash, suggesting ample capital per the author’s note, source: @ai_9684xtpa on X. According to @ai_9684xtpa, the trader added 2,000,000 USDC to margin roughly one hour ago, lifting the liquidation price to $120,804.7; the update aligns with the position tracker cited, source: @ai_9684xtpa on X; hyperbot.network/trader/0x5D2F4460Ac3514AdA79f5D9838916E508Ab39Bb7. For trading context, a higher liquidation threshold provides the short more price buffer before forced closure under exchange risk rules, which can reduce immediate liquidation risk if spot remains below the threshold, source: docs.hyperliquid.xyz.

According to @52kskew, BTC perps are showing PvP flows, and a thinner Binance perpetual order book is making these flows more apparent, indicating reduced visible liquidity depth, source: @52kskew. These conditions tend to increase price impact and slippage for market orders and can heighten short-term volatility on BTC perps as PvP rotations dominate, source: @52kskew.

According to @52kskew, BTC HL Perp spreads have widened following the absence of large HL flow and Binance market making, with roughly 205 BTC now causing 1%+ price impact versus about 392 BTC previously causing only 0.26% price impact (source: @52kskew on X, Oct 12, 2025). He reports the latest move was mainly short covering, leaving upside liquidity thin with bid liquidity clustered near $108,000 and ask liquidity near $113,000 on the BTC HL Perp order book (source: @52kskew on X, Oct 12, 2025). He notes an expectation for better spreads next week, indicating current market conditions remain fragile for aggressive orders on BTC perps (source: @52kskew on X, Oct 12, 2025).

According to @52kskew, Hyperliquid BTC perpetuals and Binance BTC perpetuals simultaneously showed a sharp liquidity crunch that hit liquidations and margins for very large crypto market makers. According to @52kskew, dramatic backstops appeared in the order books, including unusually large bids of approximately 200M and 144M around the 100,000 level on Hyperliquid before and after spreads blew out. According to @52kskew, the cross-exchange patterns indicate a very large liquidity provider and likely multiple market makers were wiped out, with widespread inventory losses. According to @52kskew, such aggressive bids and widened spreads are typically last-resort exchange and MM actions to prevent a perpetual crash, and the industry narrowly avoided a broader disaster. According to @52kskew, traders should closely monitor BTC perp liquidity and spreads on Hyperliquid and Binance—especially depth around 100,000—because these stress points could drive near-term volatility and liquidation cascades.