Market Makers Hold $600M in BTC and ETH Shorts with Liquidation Thresholds Out of Reach
While retail bears suffered billions in liquidations during the latest crypto rally, institutional market makers are holding over six hundred million dollars in Bitcoin and Ethereum short positions. Blockchain data reveals these positions belong to hedging books from Abraxas Capital, Fasanara Capital, and Wintermute. With liquidation thresholds situated more than sixty percent above current spot prices, these institutional hedges remain insulated from short squeezes.
The recent market surge wiped out retail leverage, racking up over two billion dollars in short liquidations across the board. Yet on-chain monitoring shows a lingering six hundred million dollar short wall sitting on derivatives books.
The massive exposure belongs to Abraxas Capital, Fasanara Capital, and Wintermute. Abraxas carries the heaviest burden, holding nearly fifty-eight million dollars in unrealized losses across $ETH and Bitcoin shorts. Meanwhile, Wintermute has actually expanded its hedge positions on decentralized venues like Hyperliquid while transferring funds to Binance.
Traders eyeing a secondary short squeeze on these institutions will likely be disappointed. The structural distance to liquidation is massive, requiring Bitcoin to push past one hundred twenty-eight thousand dollars and Ethereum to break four thousand dollars before any forced buybacks occur.