A trader has opened a $74,547,000 Bitcoin short position using 40x leverage, and the bet now sits just $150 away from a full liquidation. The position was flagged by trader and on-chain commentator AshCrypto on X. At that leverage ratio, the trade has already burned through most of its margin, leaving almost no room for Bitcoin’s price to move before the exchange steps in and forces the position closed.
How the $74.5 Million Short Got This Close
The trade runs on 40x leverage, a ratio that shrinks the room for error far more than unleveraged spot trading ever would. According to AshCrypto, the short has narrowed to a $150 cushion between its current mark and its liquidation trigger. Once Bitcoin’s price crosses that line, the exchange will automatically buy back BTC to close the position, a mechanic known as a short squeeze when it happens at scale.
Positions of this size are typically opened on decentralized perpetual futures platforms, where a trader can control tens of millions of dollars in notional exposure while posting only a fraction of that amount as collateral. That’s what lets a bet this size get built with so little buffer left once the market moves against it.
This is not the first time a Hyperliquid short has come this close to being wiped out. In May 2026, a separate trader opened a $20.32 million BTC short at the same 40x leverage, with the liquidation trigger sitting roughly 1.5% above bitcoin’s price at the time, according to Bitcoin.com News.
What a Forced Close Could Mean for the Market
If the position is liquidated, the exchange has to buy Bitcoin on the open market to close it out, which can add brief upward pressure to the price at the moment it happens. For traders following these swings, UseTheBitcoin’s ongoing crypto news coverage regularly tracks how leveraged bets like this one play out once they cross their liquidation line.
The Price Move That Decides This Trade
The entire outcome now comes down to whether Bitcoin ticks up by roughly $150 from its current level. AshCrypto’s tracking shows the position still open as of this writing, meaning the trade could go either way within hours rather than days.
What This Means for You
This trade is a clear example of how leverage cuts both ways. A 40x short lets someone control a large position with a small amount of collateral, but it also means a tiny price move can wipe out that collateral entirely. Stories like this one are a useful reference point for understanding the real risk behind leveraged trading before ever using it yourself.
This article is for informational purposes only and does not constitute financial advice. Do your own research before making any investment decisions.
