Recently, I’ve been monitoring on-chain data and 1-hour K-line charts and discovered a very interesting phenomenon. A large address that frequently shorts altcoins has recently changed its operational logic.

What is he doing? He’s gradually closing short positions on coins like ASTER, UNI, PUMP, while withdrawing $2 million and switching to buy spot HYPE, and simultaneously opening corresponding short positions to hedge, with a total scale reaching $7.8 million. At first glance, it seems contradictory—buying spot and shorting at the same time—so is he bullish or bearish?

Careful analysis reveals the answer. First, he’s no longer solely shorting altcoins; he’s switching to a defensive stance. Second, why choose HYPE for hedging? It indicates he believes short-term volatility for this coin will increase, but the direction is still uncertain. Third, he hasn’t closed all short positions; he still holds shorts on ETH and ASTER, which shows he maintains a somewhat bearish attitude towards the overall market.

In summary, this guy isn’t simply bullish or bearish; he’s preparing for a potential big wave of volatility. His combination of HYPE spot + short positions is like buying a “protective cushion”—no matter how HYPE moves, his losses are limited. Meanwhile, by keeping shorts on other coins, he still has profit potential if the market truly declines.

This is the play of a big player—no rush to place heavy bets, but instead building a defensive line first, waiting for the market direction to be confirmed before acting.