Bear whale with a daily unrealized loss of $133,000, while PEPE longs make a profit of $2.05 million

The PEPE short whale on Hyperliquid is paying the price for a bearish decision. According to on-chain monitoring, this largest short position has shorted over 12.4 billion kPEPE tokens (approximately $8.54 million) with 3x leverage, currently incurring an unrealized loss of $133,000. Meanwhile, the largest PEPE long whale on the same platform is enjoying an unrealized profit of $2.05 million, highlighting a stark long-short divergence. This reflects a rapid shift in market sentiment amid PEPE’s recent strong rally.

Short Dilemma: Leverage Amplifies Losses

Based on HyperInsight data, the situation for this top PEPE short is not optimistic:

• Shorted amount: 1,246,664,886 kPEPE
• Short position value: approximately $8.54 million
• Leverage: 3x
• Unrealized loss per token: $133,000

A 3x leverage means that a 1% price movement results in a 3% change in the account. For shorts, PEPE’s recent upward trend is undoubtedly a nightmare. According to recent reports, PEPE has surged 66.94% in the past 7 days, a move that is deadly for a 3x leveraged short.

Long-Short Divergence: $2.05 Million Unrealized Profit Contrast

Even more interesting is that the largest PEPE long on the same platform is enjoying the fruits of victory. This long whale also operates with 3x leverage, holding 2,008,865,090 kPEPE tokens (about $13.86 million), with an unrealized profit of $2.05 million.

This creates a clear contrast:

The performance of these two whales almost perfectly reflects current market sentiment.

Why Is PEPE Rallying Strongly?

PEPE’s strength isn’t sudden. Market data shows that this meme coin leader has demonstrated impressive gains since the start of the year:

• 7-day increase: 66.94%
• 24-hour increase: 1.54% (as of the latest news)
• Reported early-year surge: up to 35%

Several key factors underpin this rally. First, the entire meme coin sector has shown a strong rebound at the start of the year, making PEPE, as the sector leader, a natural target for capital inflows. Second, analysis suggests that amid Bitcoin’s consolidation at high levels, institutional and retail funds are shifting into altcoins seeking higher returns. Third, PEPE’s token structure has become relatively clean after multiple adjustments, creating favorable conditions for price surges.

Market Implications and Risk Warnings

Systemic Dilemma for Shorts

Current market sentiment is clearly bullish. Shorts not only face PEPE’s upward movement but also suffer from leverage magnification. The reported unrealized loss of $133,000 on a single short position indicates that even on large platforms like Hyperliquid, big-money short bets are being ruthlessly punished by the market.

The Double-Edged Sword of Leverage Trading

The $2.05 million unrealized profit for longs looks impressive, but it also serves as a reminder of the risks of leverage. The same 3x leverage can amplify losses just as easily during a market reversal. High-volatility meme coins like PEPE are inherently uncertain.

Divergence Among Market Participants

The data shows a clear polarization among market participants regarding PEPE. Longs are betting on the continued hotness of the meme coin sector, while shorts seem somewhat isolated. This divergence often indicates that the market has reached a relatively strong consensus.

Summary

The $133,000 unrealized loss for PEPE shorts and the $2.05 million unrealized profit for longs tell a larger market story: in the context of Bitcoin’s high-level consolidation and capital seeking higher yields, the meme coin sector is becoming a new capital gathering place. PEPE’s 66.94% seven-day increase proves this point. For participants, understanding the current balance of bullish and bearish forces, as well as the risk amplification from leverage, is crucial. Whether it’s losses for shorts or gains for longs, both serve as reminders that trading high-volatility assets with leverage requires cautious risk management.