Crypto Whale Places $12.3M Leveraged Bet Against Silver on DeFi Protocol

Edgen Crypto

·Mar 03 2026, 16:00

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Key Takeaways

A large crypto trader is holding a significant short position on silver using the decentralized derivatives exchange Hyperliquid, signaling a growing trend of on-chain commodity speculation. The trade highlights the increasing capacity of DeFi protocols to handle institutional-sized bets on traditional assets.

A single trader opened a $12.3 million short position on silver with 20x leverage.
The position has already generated approximately $2 million in unrealized profits for the whale.
The event showcases Hyperliquid's growing liquidity for non-crypto assets, attracting large-scale speculation away from more volatile tokens.

Whale Nets $2M Gain From $12.3M Leveraged Silver Short

On March 3, 2026, a prominent crypto trader, or "whale," established a $12.3 million short position against silver on the decentralized perpetuals exchange Hyperliquid. By employing 20x leverage, the trader amplified a bearish bet that has since accumulated approximately $2 million in unrealized gains. This significant trade on a traditional commodity was executed entirely on-chain, demonstrating the increasing sophistication and capital depth of DeFi trading venues.

On-Chain Commodity Trading Attracts Institutional-Sized Bets

This trade underscores a strategic shift as large speculators use DeFi infrastructure to trade traditional financial assets. For some traders, shorting a commodity like silver is perceived as a safer alternative to the extreme volatility inherent in many crypto tokens. The position's viability hinges on the deep liquidity for commodities available on Hyperliquid, enabled by its HIP-3 protocol update. As traders recognize the platform's capacity to handle institutional-sized orders, it may attract further speculative capital into on-chain commodity markets, potentially increasing trading volumes for assets outside the typical crypto sphere.