Crypto market maker Wintermute has built large short positions in XRP and Hyperliquid.

On Aug. 24, blockchain outlet U.Today reported that on-chain data tracked by Onchain Lens showed Wintermute’s XRP short position exceeded $10 million.

Wintermute’s overall short exposure increased by about $45 million since the previous tally. The top 5 short positions included Ethereum, bitcoin, Solana, Hyperliquid’s HYPE token and XRP. The tracked positions were in unrealised losses on an aggregate basis.

The increase in positions coincided with a short-term surge in XRP. XRP has risen 49.24 percent over the past seven days, and open interest stood at $3.61 billion. That suggests leveraged positions have built up heavily in the market.

Positioning across derivatives markets is tilted to the long side, opposite to Wintermute. Binance’s regular accounts had a long-to-short ratio of 2.5651, while OKX stood at 2.08. Binance’s top trader ratios were higher, at 2.8081 by accounts and 2.2136 by positions. That means many XRP derivatives participants are betting on further gains.

Wintermute’s XRP short does not carry enough weight to sway the overall market. The position is about 0.28 percent of total XRP open interest of $3.61 billion. The absolute size is large, but its share is limited compared with the whole market.

Recent price action has also not been moving in only one direction. XRP has yet to maintain the strong upside momentum seen in the previous rally. Over the past 24 hours, liquidated XRP positions totalled $21.42 million, with long liquidations at $12.47 million and short liquidations at $8.95 million. As expectations of gains weakened, losses on long positions were reflected more strongly.

Market reactions could vary widely depending on XRP’s next moves. If XRP extends gains, Wintermute’s short position could contribute to a larger short squeeze. If upside momentum breaks, already crowded long positions could amplify downside volatility.

The latest moves drew attention because a major trading firm’s expanding shorts directly diverged from the market’s broader tilt toward longs. It also showed that if XRP’s price direction changes, leverage on one side could be hit hard first.

WINTERMUTE IS DOUBLING DOWN ON SHORTS WHILE MOVING HUGE FUNDS TO BINANCE They have deposited millions more into Hyperliquid and increased their short exposure from $146.19M to $190.77M, adding ~$44.58M in shorts since our last update. Top 5 short positions: • $ETH: $53.02M… https://t.co/300FjXrgWv pic.twitter.com/Z79o7Fbj76