Bitcoin hedge funds face a liquidation trap when their collateral is split across markets

Your call?🐂 Bullish🐻 Bearish

$BTC

$83,758

+0.9%

$HYPE

$86.58

+1.5%

Here's a hypothetical situation: a hedge fund is making money, but one of its exchanges is about to liquidate its position anyway. Bitcoin has fallen, its short position on CME is profitable, and the matching long on Hyperliquid is…