Hacker bets on BTC vs ETH with 20x Tornado Cash-funded trade

Frequently asked questions

1. What positions did the Tornado Cash-funded wallet open on Hyperliquid?

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   It opened a 20x long on 169.47 BTC worth $12.84 million and a 20x short on 5,740 ETH worth $12.83 million, funded by 6.92 million USDC from selling 3,100 ETH received via Tornado Cash.

2. Why is the hacker's trade considered market-neutral?

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   The long and short notionals are nearly identical in size, so the position profits from Bitcoin outperforming Ether rather than from the overall direction of crypto markets.

3. Where did the wallet's trading funds come from?

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   The newly created wallet received 3,100 ETH from Tornado Cash, converted it into 6.92 million USDC, and deposited the stablecoins into Hyperliquid before opening the leveraged positions.

4. Can traders track the hacker's positions in real time?

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   Yes. Both perp legs sit on Hyperliquid's public ledger, so the position's size, leverage, PnL and liquidation levels are visible to anyone on-chain.

5. What is the risk of a 20x leveraged BTC/ETH pair?

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   At 20x leverage, a relatively small adverse move in the BTC/ETH ratio can trigger liquidation of either leg, even though the overall structure is market-neutral.