BTC ETH Over the past month, one address linked to Abraxas Capital on Hyperliquid went from a $120M loss to a $130M profit, while another address went from a $30M loss to a $100M profit. Today, both accounts started significantly reducing their BTC short positions and began gradually withdrawing principal. It seems they might not publicly disclose their positions on Hyperliquid moving forward. Abraxas Capital’s short positions are for hedging purposes, and the actual leverage is often less than 1x. This is because the institution holds spot positions long-term. When prices are high, they continuously open short positions using a martingale strategy. This way, they not only earn funding fees but also profit from the shorts when prices eventually drop. Using this method, they can drive down the effective cost of their spot holdings to very low levels, potentially even negative. For example, if you bought Bitcoin at $80K, and as it rises to $110K, you gradually open 1x short positions. Now, if the price drops to $95K and you close the shorts, your effective spot purchase price would drop to around $60K. Repeating this process over several major hedging cycles, your spot cost could eventually be $20K, zero, or even negative.