I just noticed an exciting activity on the chain involving a trader who seems to be heavily betting on a price decline. This person started short selling Ethereum on Friday and made huge profits from that trade, then used the funds to expand his strategy. Now he has multiple short positions covering four different coins with a total value of approximately $261 million.

What’s interesting is how he turned $3 million into $11 million through this strategy. In Bitcoin, he shorted 1,640 coins for $150 million, and is now realizing an unrealized profit of $1.98 million. On Ethereum as well, he made around $6.29 million from short selling profits. But not everything is smooth sailing — his trade on HYPE is currently losing about $60,000.

What’s remarkable is that in the past few hours, he added new positions on HYPE worth $16 million. It seems he believes the price will fall further. All of this reminds us that short selling can be very profitable if you read the market correctly, but it’s also risky. This trader is betting on a significant correction, but if he’s wrong, the losses could be very large.