[DigitalToday reporter Yoonseo Lee (이윤서)] An anonymous wallet that withdrew funds from Tornado Cash (TORN) deposited about $7 million into Hyperliquid and built a large position betting on bitcoin strength.
U.Today, a blockchain media outlet, reported on Nov. 8 that the wallet used 20-times cross leverage to take a bitcoin long and an ether short at the same time.
On-chain tracking accounts Lookonchain and Onchain Lens analysed the wallet as building a position that profits when bitcoin is relatively stronger than ether. The total size of the positions opened on Hyperliquid is about $26 million. The bitcoin long was entered at $12.84 million with an entry price of $75,762.2, while the ether short was 5,740 ETH, worth about $12.83 million.
The route of the funds has also drawn attention. The wallet withdrew 3,100 ETH from Tornado Cash to a new address, then swapped all of it for 6.92 million USDC on CoW Swap. It then moved the funds to Hyperliquid and used them as collateral for futures trading.
The market is interpreting the trade as a bet on the gap in relative strength between bitcoin and ether rather than on the price direction of either asset. The structure profits if bitcoin rises faster than ether, or if ether falls more than bitcoin in a down market.
So far, the strategy is generating profits. With bitcoin holding near its recent highs, gains on the long position are offsetting unrealised losses on the ether short. Funding income generated from the ether short position has also been added.
Suspicions around the source of funds have not been resolved. Earlier tracking results showed the funds passed through addresses linked to hackers who stole $290 million from Drift Protocol in April 2026. Some blockchain researchers are warning against hasty conclusions. They point out that passing through Tornado Cash makes funds harder to trace and that the alleged link to a specific hack is largely based on circumstances such as similar transaction size.
The 20-times leverage is also a risk factor. If ether rebounds sharply while bitcoin moves sideways, losses on the ether short could grow and reduce the account's overall collateral. Under Hyperliquid's cross-margin structure, which shares collateral, that could lead to forced liquidation. In that process, there is also a risk of losing the entire $6.92 million put up as collateral.
The liquidation prices currently indicated are $37,014.09 for bitcoin and $3,343.60 for ether. With profit and loss depending on the relative price moves of the two assets, profits cannot be guaranteed even if the overall market rises. The trade is drawing attention as a case showing the performance and risks of a high-leverage relative-value strategy alongside doubts over the source of funds.
