AAVE Plunges After Whale Dump as 7x Leveraged Short Worth $2.42M Becomes Hyperliquid’s Largest AAVE Short Position

COINOTAG News reported on December 24, citing Hyperinsight monitoring that a sizable whale dumped AAVE tokens, sparking a pronounced price drop amid contested upgrade debates within the Aave ecosystem.

Onchain activity shows address starting with 0x3c7 opened a 7x leveraged AAVE short position worth $2.42 million, with an entry near $151 and a liquidation trigger around $173. The position registers roughly 17% unrealized profit to date and stands as Hyperliquid’s largest AAVE short.

Additionally, the same address placed a limit sell near $154 for about $780,000, pending fill, while configuring take-profit at $136 and a stop-loss at $196 to manage downside risk.

These moves illustrate liquidity and risk-management dynamics in DeFi markets, where active traders use leverage to express tactical views on AAVE during periods of volatility.