Crypto Traders Drive $500 Million in Oil Futures Bets on Hyperliquid Amid Strait of Hormuz Tensions

Crypto traders executed over $500 million in synthetic oil futures on decentralized exchange Hyperliquid over the weekend, capitalizing on volatility from Iran's closure and reopening of the Strait of Hormuz. Bitcoin climbed to $78,000 late Friday after news of the strait's reopening, triggering $762 million in liquidations across 168,336 traders, with $593 million on the short side representing a massive short squeeze. Iran then reversed course less than 24 hours later, broadcasting the strait was closed again with reports of gunfire at vessels, while crude oil had initially dropped nearly 10% to $85.90 per barrel on reopening news. Separately, RaveDAO's RAVE token collapsed 90% from a $27.33 peak to $1.15, wiping out over $5 billion in market cap amid allegations that 90% of supply was held in three team-linked wallets, prompting investigations by Binance and Bitget.

Bitcoin short squeeze triggered by geopolitical developments

• ▪By Saturday evening hours in Asia, bitcoin had pulled back to $76,091, up just 0.8% on the day.
• ▪Bitcoin climbed to $78,000 late Friday, triggering $762 million in liquidations across 168,336 traders.
• ▪$593 million of the $762 million in liquidations were on the short side, according to CoinGlass.
• ▪Bitcoin broke above the $76,000-$78,000 zone that has capped every rally attempt since the February 5 crash.

Strait of Hormuz closure reversal and oil market impact

• ▪Crude oil dropped nearly 10% to $85.90 per barrel on the initial Strait of Hormuz reopening headline.

Cryptocurrency market performance and liquidation breakdown

• ▪Friday's breakout rally resulted in a $590 million shorts rout.
• ▪Ether shorts accounted for $167 million in liquidations on Friday.
• ▪Bitcoin shorts accounted for $381 million in liquidations, the largest share of Friday's liquidations.
• ▪Ether is up 5.2% on a weekly basis as of the article's publication.
• ▪XRP leads weekly cryptocurrency gains at 6.4% as of the article's publication.

RaveDAO token collapse and fraud allegations

• ▪RaveDAO's RAVE token traded at $1.15 on Sunday, down from a $27.33 peak on Friday.
• ▪RaveDAO's RAVE token erased roughly $5.7 billion in market value.
• ▪RaveDAO's RAVE token wiped out more than $5 billion in market cap.

Perspective of Crypto traders using Hyperliquid

• ▪Crypto traders executed over $500 million in synthetic oil futures on Hyperliquid over the weekend.

Perspective of Bitcoin short sellers

• ▪Bitcoin short sellers suffered $381 million in liquidations on Friday, the largest share of the liquidation event.

Perspective of RaveDAO token holders

• ▪RaveDAO token holders saw RAVE plunge from a $27.33 peak on Friday to $1.15 on Sunday.
• ▪RaveDAO token holders faced allegations from ZachXBT that about 90% of RAVE's 1 billion supply was held in three team-linked wallets.
• ▪RaveDAO token holders lost more than $5 billion in market cap as the token wiped out value.

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