Large Short Position in the LIT Market: Strategic Moves and Risk Analysis of the "Ultimate Bear" Account

Recently, market monitoring data revealed that the account known as "Ultimate Bear" holds a significant short position relative to the Lighter (LIT) token. This trader currently manages a short position of 31,000 LIT tokens, amounting to approximately $87,000, with an average planned entry price of $2.95 and a liquidation risk set at $4.75. A new position was opened at the end of November at a price of $3.03, and there is currently an unfilled order for 10,000 LIT tokens (around $3.06).

Regarding the Bitcoin market, this account is executing a much larger strategy. Through a short position worth $43.68 million in BTC, the trader has currently realized a profit of $12.05 million, corresponding to 552%. The average entry price for BTC is maintained at $111,500, with a liquidation level starting at $102,400, indicating the maturity of this hedging strategy.

Since November, this account has executed more than five profit-taking operations at local lows. It reduced its BTC short portfolio by $93 million relative to the peak at the end of October, closing various positions worth $57 million during the month. Such actions demonstrate the account's strategic response to market fluctuations.

The current price of the LIT token is $1.73, while BTC is trading above $93.21K. This sentiment plays a crucial role in analyzing how well the "Ultimate Bear" account's short strategy and risk parameters are aligned.