A sharp weekend reversal swept through digital asset markets after on-chain data revealed that Wintermute, one of the industry’s largest market makers, had amassed a heavily short-biased position on the Hyperliquid derivatives platform. Bitcoin tumbled to $75,500 on Sunday, surrendering a chunk of the gains from its strongest weekly run in years, while Ether and XRP posted steeper losses.

Analytics platform Onchain Lens flagged the positioning late Saturday, reporting that Wintermute held roughly $160 million in open positions on Hyperliquid, with $146.19 million on the short side against just $13.85 million in longs. The combined book was sitting on an unrealized loss of $3.66 million while earning $2.14 million in funding payments….