HYPE long positions fully closed, the market logic behind earning $686,000 in one day

According to the latest news, the well-known KOL “Brother Maji” Huang Licheng’s HYPE long positions have all been closed, with a total profit of approximately $686,000 in the past day. This operation marks an important milestone in his recent high-frequency multi-asset trading over the past week. From an unrealized loss of $610,000 on January 10 to a profit of $686,000 on January 12, Huang Licheng’s leveraged positions experienced a dramatic reversal, reflecting the current market volatility and the flexible response strategies of large traders.

From Losses to Big Gains: A Dramatic Reversal in One Week

Based on on-chain data monitoring, Huang Licheng’s trading trajectory has shown a clear turning point in recent days:

Timeline Review

• January 10: Overall leveraged long positions unrealized loss expanded to $610,000, including ETH longs with a $460,000 unrealized loss and HYPE longs with a $150,000 unrealized loss
• January 11: Attempted short-term ZEC trading, holding a 10x leveraged position for only 1 hour before closing, with a profit of just $2,544
• January 12: All HYPE longs closed, with a profit of $686,000 in nearly 1 day

This rapid reversal is no coincidence. HYPE increased by 3.84% in the past 24 hours, while it declined by 5.24% over the past 7 days. Huang Licheng chose to close his HYPE positions during this recent rebound, precisely capturing this upward window.

Key Data on Position Changes

Why Close HYPE Now

Fundamental of the Asset

HYPE, as the token of the Hyperliquid platform, currently ranks 14th by market cap, with a 24-hour trading volume of $110.92 million. Although the longer-term trend (30 days) shows a decline of 12.4%, the recent rebound window provided an opportunity to close positions. Huang Licheng’s 10x leveraged HYPE long entry was at $24.4, and the current price is $25.04. The rebound at the time of closing was sufficient to turn previous losses into gains.

Risk Management Considerations

From the $610,000 unrealized loss on January 10, Huang Licheng’s leveraged positions have already endured significant pressure. Choosing to close the more loss-affected HYPE position helps to release risk exposure and protect his remaining long ETH holdings. He still holds 10,100 ETH (worth $31.9 million), which remains his core position.

The True Reflection of Current Position Structure

After closing HYPE, Huang Licheng’s overall position structure becomes clearer:

• ETH longs: 10,100 ETH ($31.9 million), 25x leverage
• HYPE longs: fully closed
• Total loss over nearly 1 week: $797,000

This structure indicates that his long-term confidence still lies with Ethereum. The HYPE short-term trades are merely quick arbitrage in high volatility, not strategic holdings.

Personal Observations

From Huang Licheng’s recent operations, he appears to be adopting a “long-short combined” strategy: maintaining ETH as a long-term core position (despite current unrealized losses), while engaging in high-frequency short-term trades on other tokens to supplement gains. This approach allows him to stay strategically optimistic about mainstream coins while using short-term trading flexibility to hedge long-term risks.

However, it should be noted that this high-leverage, high-frequency trading style can generate quick profits during market rebounds but also leads to rapid losses during downturns. The $797,000 loss over a week underscores the real risks involved in this strategy.

Summary

Huang Licheng’s closure of HYPE positions and the $686,000 profit represent a successful capture of recent market volatility. More importantly, it reflects his underlying logic: balancing gains and risks through flexible position management in a high-leverage, high-risk environment. From a $797,000 loss in one week to a $686,000 profit in one day, this dramatic fluctuation reminds us that high-leverage trading is both an opportunity and a trap. His steadfast long-term stance on ETH and decisive HYPE position closures demonstrate the risk management considerations of an experienced large trader.