According to EmberCN on Twitter, two major crypto whales have successfully turned their large short positions on BTC, ETH, and SOL from losses to profits. Whale 0x5b5d used $50.5 million USDC at 5x leverage to short $228 million worth of BTC, ETH, and SOL since May 9, now realizing a $6.38 million profit (source: EmberCN Twitter, May 13, 2025; hypurrscan.io). Whale 0xB83D similarly entered significant leveraged shorts. The profitable turnaround of these large leveraged positions is driving increased short interest and volatility, signaling potential further downside and caution for traders in the current crypto market environment.

According to The Kobeissi Letter, short interest as a percentage of shares outstanding in the Russell 2000 index has reached approximately 4.6%, marking the highest level in at least six years and nearly doubling since 2022 (source: The Kobeissi Letter, May 8, 2025). This surge in bearish sentiment suggests that investors are increasingly positioning for further declines in small-cap equities. For crypto traders, heightened volatility and risk aversion in traditional small-cap stocks could drive increased capital inflows into digital assets as investors seek alternative risk exposures, especially in trending tokens and DeFi projects.

According to The Kobeissi Letter, short interest on US stocks has surged to approximately 2.3%, marking the highest level since the 2020 pandemic. This represents a significant 20% increase in short interest as a percentage of shares outstanding over the past few weeks, indicating one of the fastest rises in at least a decade. Such a rapid increase in short interest could suggest a bearish sentiment among traders, potentially impacting trading strategies and market movements.

According to The Kobeissi Letter, short interest on US stocks has increased to approximately 2.3%, marking the highest level since the 2020 pandemic. Short interest as a percentage of shares outstanding has surged by about 20% over the past few weeks, representing one of the fastest increases in short interest in at least a decade. This trend could indicate growing bearish sentiment among traders, potentially impacting trading strategies in the near term.

According to Eric Balchunas, nearly 40% of $TLT shares are held short with trading volume in the 2-3 billion range, indicating a substantial build-up in short interest. This activity has paid off significantly for traders today. Eric Balchunas describes $TLT as the professional version of high-risk trading, as noted by Todd Sohn.