Largest On-Chain Gold Short Uses 5x Leverage on PAX Gold (PAXG)
Gold’s surge past $4,890 boosted returns for major leveraged PAXG holders on Hyperliquid, as the leading long closed part of its position for substantial profits.
On January 21, gold prices topped $4,890 per ounce, pushing gains for the largest on-chain PAXG long position on Hyperliquid. The whale, initially holding $7.3 million with 5x leverage, closed part of the trade for a $330,000 profit, reducing holdings to $3.58 million while still up $350,000 (36%). This remains the largest PAXG long on-chain. Earlier, on January 20, another top holder held $4.7 million combined in PAXG and GOLD, up $280,000 (50%). Hyperinsight also reported that the largest on-chain gold short stands at 2,989.3 PAXG worth $14.02 million at a $4,533 entry with 5x leverage, carrying about $477,000 in unrealized loss, while offsetting with $1.245 million in profit from Bitcoin and altcoin shorts.
- Leverage: Borrowing funds to amplify trading exposure; 5x leverage means controlling five times the invested capital.
- PAXG (PAX Gold): A crypto token backed by physical gold, offering blockchain-based ownership of the metal.
- Short Position: A trading strategy that profits from a decline in an asset’s price, involving selling borrowed assets to buy them back later at a lower price.