Two accounts linked to London investment manager Abraxas Capital have received more than $66 million in funding payments on Hyperliquid, adding income to a strategy designed to hedge crypto holdings.
The strategy starts with liquid-staked Ether (ETH) pledged on Aave for stablecoin loans. The funds pass through Binance before reaching Hyperliquid, where short positions help limit the effect of price changes on Abraxas’s crypto holdings.
The shorts reached a notional peak of $1.57 billion on Oct. 6, 2025. Ether accounted for $498 million of that exposure, while Bitcoin (BTC) accounted for $446 million. From August through October 2025, the positions amounted to roughly 10% of Hyperliquid’s open interest, the value of contracts still open.
The accounts began trading on Feb. 20, 2025. Since then, they have recorded $9.8 billion in volume across 37 markets and 5 million trade fills. Their funding receipts exceeded $66 million over that period.
Abraxas Capital’s flagship fund is the Elysium Global Arbitrage Fund. The firm has used a market-neutral strategy since 2018, pairing short positions with crypto holdings to reduce exposure to price swings.
The accounts cut back after funding rates fell following the October 2025 buildup. By February 2026, their spot holdings of Hyperliquid (HYPE) had fallen from 1.67 million tokens to nearly zero. Their HYPE short position also declined, from 1.89 million tokens to 217,000.
Together, those spot and short positions fell in value from $104 million to $25 million. The accounts later expanded their activity again.
The activity took place in a market where large positions continued to favor shorts. An Oct. 20 snapshot of large Hyperliquid positions put short exposure at $4.267 billion, compared with $3.746 billion in longs.
On Oct. 21, 2026, the two Abraxas-linked accounts held about $365 million in assets on Hyperliquid.
