「Whale Discovery」 $10 Million Level Oil Whale Arbitrage Fails, US and Brent Oil Backwardation Results in $450,000 Loss

BlockBeats News, July 27th, according to Hyperinsight monitoring, a whale with an address starting with 0xa314 adjusted its position to long WTI and short Brent after a surge in crude oil prices, forming a cross-commodity pair trade with a total size of about $15 million, expecting WTI to continue its previous relative strength.

From July 14th to 23rd, WTI and Brent on Hyperliquid rose by about 16.4% and 13.1% respectively, with WTI significantly outperforming. The whale then established about 91,000 long positions in WTI and expanded the short positions in Brent to about 100,000.

However, after the easing of geopolitical risks, both crude oils fell back simultaneously, with WTI falling slightly more than Brent, and the pair trade did not materialize. Due to the higher cost of building long positions in WTI, the losses exceeded the gains from the short positions in Brent.

As of the time of writing, the whale holds 86,000 long positions in WTI and 90,000 short positions in Brent, with a total value of approximately $15.1464 million. Among them, the long positions in WTI are unrealized losses of about $611,600, and the short positions in Brent have unrealized gains of about $198,000; combined with the previously realized loss from closing positions of about $45,900 and $15,000 in funding rates, the cumulative loss of this round of WTI-Brent crude oil spread trading is about $444,400.

This address is not exclusively trading crude oil. According to records, it initially focused on trading semiconductor and storage targets such as NVDA, DRAM, MU, SNDK, while also participating in stock index contracts such as SP500, XYZ100, with a historical profit of $8.6 million.

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