Bitcoin hedge funds face a liquidation trap when their collateral is split across markets

Here's a hypothetical situation: a hedge fund is making money, but one of its exchanges is about to liquidate its position anyway. Bitcoin has fallen, its short position on CME is profitable, and the matching long on Hyperliquid is bleeding cash. The two trades were designed to offset each other, but Hyperliquid can't use profits […] The post Bitcoin hedge funds face a liquidation trap when their collateral is split across markets appeared first on CryptoSlate.
Key Takeaways
- Here's a hypothetical situation: a hedge fund is making money, but one of its exchanges is about to liquidate its position anyway.
- Bitcoin has fallen, its short position on CME is profitable, and the matching long on Hyperliquid is bleeding cash.
- The two trades were designed to offset each other, but Hyperliquid can't use profits […] The post Bitcoin hedge funds face a liquidation trap when their collateral is split across markets appeared first on CryptoSlate.
Summary generated by IndiCrypto from CryptoSlate. IndiCrypto is a news aggregator and does not provide investment advice. Read the original article for full context.
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