Key Highlights
- London-based FCA-regulated hedge fund Abraxas Capital has built a $135 million notional short on Brent and WTI crude perpetuals on Hyperliquid. The positions use 5-10x leverage across two wallets.
- Trader loraclexyz, who earned roughly $25 million longing Hyperliquid’s HYPE token earlier this year, has now opened a $3 million-plus short in Brent crude, raising questions about capital rotation or macro bets.
- Brent crude has surged toward $105–$114 per barrel due to Iran conflict disruptions at the Strait of Hormuz. Analysts warn of spikes to $150 or more if the chokepoint stays blocked, while Goldman Sachs and others have raised forecasts for March-April 2026.
Crypto whales and venture capital-linked players are piling into aggressive short positions on crude oil through the decentralized perpetuals platform Hyperliquid, even as geopolitical tensions in the Middle East drive prices higher.
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On-chain intelligence from Arkham and Lookonchain reveals two notable bets. London-based hedge fund Abraxas Capital, an FCA-regulated firm founded in 2002 that has shifted focus to digital asset strategies, has amassed a roughly $135 million notional short across Brent and WTI crude contracts.
The hedge fund’s positions span two across two wallets, with combined exposure split between approximately 955,000 xyz:BRENTOIL and 323,000 xyz:CL contracts using around 5-10x leverage.
Separately, Arkham flagged trader loraclexyz, who earlier pocketed $25 million longing Hyperliquid’s native HYPE token in January-February. The account has now flipped to short more than $3 million in Brent crude, prompting speculation about whether this signals a broader rotation or macro read.
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The trades come at a notable timing, with Brent crude recently climbing toward $105–$114 per barrel amid disruptions from the Iran conflict, including threats to the Strait of Hormuz—the chokepoint for roughly one-fifth of global oil supply.
Various analysts have warned of potential spikes to $150 or more if the waterway remains restricted, with Goldman Sachs and others revising forecasts sharply upward for March-April 2026.
Yet these sophisticated players are betting the other way, apparently wagering on mean reversion, diplomatic progress, or a quick resolution that eases supply fears and curbs inflation pressures that could influence central bank policy.
Hyperliquid emerges as arena for 24/7 oil shorts
Hyperliquid has emerged as a go-to venue for such high-stakes commodity trades among crypto-native capital, blending perpetual futures with on-chain transparency. Abraxas’s wallets have shown prior success on the platform, with one reportedly generating over $166 million in cumulative profits across various positions.
The current state of elevated short interest on the platform adds to volatility concerns, as liquidations could amplify swings in either direction.vThis crossover—crypto profits funding traditional commodity bets—highlights how decentralized derivatives are blurring lines between digital assets and legacy markets.
Whether these shorts prove prescient or painful will depend on how quickly Hormuz traffic resumes and whether the oil spike proves transitory.
Also read: From Millions to Liquidations: The Saga of James Wynn & Machi Big Brother
