Abraxas-linked Address Shorting HYPE

‍

A Hyperliquid account, 0xB83, has been found with a $17.4M short position on Hyperliquid’s native token, HYPE, alongside another $246M in short positions on BTC, ETH and SOL. The account is currently holding an unrealized profit of $8M, with an all-time profit of over $20M. This account has been suspected to be under the control of digital asset management firm, Abraxas Capital Management. This is due to past deposits to a Binance deposit address, 0xc29, which has been used by known Abraxas Capital addresses. 

The firm has over $3.6B in assets under management and is known for their delta-neutral arbitrage fund, which manages over $1.37B in assets. These positions could be the short legs of the fund, which is further supported by the address’s holdings of ~$17.3M in HYPE, of which 460,674 tokens, or $17M worth are staked.

‍

‍

Connecting the anonymous wallet (0xB83) and a major firm like Abraxas is a prime example of on-chain analysis. The flow of funds between different blockchain addresses is tarced using the Arkham Intel platform. In this case, the key piece of evidence is the shared Binance deposit address. When multiple independent wallets all send funds to the same unique deposit address on a centralized exchange, it creates a strong, publicly visible link, suggesting they are all controlled by the same entity. This transparency allows market participants to "follow the smart money" in ways that are impossible in traditional finance.

The evidence strongly suggests this is not a simple bet against the $HYPE token but a sophisticated delta-neutral arbitrage strategy. The address is simultaneously short ~$17.4M of $HYPE using perpetual futures while also holding and staking ~$17.3M of the actual $HYPE token. These two positions effectively cancel each other out, neutralizing the risk from the token's price volatility. If $HYPE's price rises, the loss on the short is offset by the gain on their holdings, and vice-versa. This setup allows the fund to be indifferent to price movements.

With price risk eliminated, the profit from this strategy is generated from two distinct sources. First, the short position likely collects a "funding rate," which are regular payments made from traders who are long to those who are short. Second, the $HYPE tokens they hold are staked, earning them a separate stream of yield directly from the Hyperliquid protocol. By combining these two income streams, Abraxas is effectively using its massive capital to farm low-risk yield from the platform's own ecosystem, a hallmark of an advanced, market-neutral fund operating in the DeFi space.