Shorting to the Top: Unknown Trader Wins $7 Million, While Others Lose Millions

A relatively unknown crypto trader made $7 million shorting ETH, while major investors suffered huge losses.

What’s remarkable about their success is that it comes at a time when several high-profile crypto personalities have suffered eight-figure losses by betting on price increases.

The silent whale swimming against the current

Despite having a portfolio worth just under $13 million, 0x58bro has a minimal social media presence with just 1,300 followers on X. Arkham’s analysis shows the trader generated most of his profits from two positions: a $3.7 million profit from shorting ETH and $1.45 million from shorting ENA, Ethena Labs’ governance token.

The composition of the trader’s wallet also revealed a strategic approach to current market volatility. They own more than $7.5 million of Aave’s interest-bearing ETH token (aETHWETH) and $5 million of Aave’s USDC deposit token (aETHUSDC), suggesting they have positioned capital to generate returns while retaining the flexibility to deploy it against further downturns.

A smaller position of 10 million HANA tokens, currently worth almost $353,000, represents their only significant long exposure.

The timing of these short positions has proven to be crucial, with Ethereum struggling to maintain momentum in recent weeks and prices hovering around the psychological support level of $2,000.

Market background shows leverage risks and speculation cycles

While 0x58bro is profiting from market declines, other traders have faced catastrophic losses trying to catch a falling knife. Data from the chain shows that Machi Big Brother, a well-known crypto personality once worth nearly nine figures, has seen the value of his Hyperliquid account fall less than $1 million. To meet margin calls on his long positions, he was forced to tap the PleasrDAO treasury funds deposited five years ago, with his total losses now at $28 million.

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The contrast also extends to institutional players. For example, Trend Research, the trading firm led by Liquid Capital founder Jack Yi, completely exited its Ethereum positions last week after accumulating approximately $1.34 billion worth of ETH at an average entry of $3,180. According to Arkham data, the exit resulted in a loss of approximately $869 million, just days after Yi publicly predicted ETH would reach $10,000.

While Trend Research was forced to unwind what was once Asia’s largest ETH long position, on-chain data from CryptoQuant shows that wallets with no history of outflows holding at least 100 ETH, known as “accumulation addresses,” are still buying through the downturn. These addresses now hold approximately 23% of Ethereum’s circulating supply and have maintained their accumulation even as prices traded below their average cost basis.

Whether 0x58bro will maintain his short positions or join the accumulating addresses, betting on a rebound, remains unknown. But for now, the trader with 1,300 followers is outperforming an industry of influencers, with millions watching his every move.