Fasanara Capital, an institutional asset manager overseeing roughly $5.7 billion in assets, is sitting on a sizable short position against Ethereum through the decentralized perpetuals platform Hyperliquid. The firm’s trading account, identified on-chain as BobbyBigSize, is part of a combined $108 million ETH short between Fasanara and fellow institutional player Abraxas Capital.

Both positions are currently underwater, with ETH trading around $1,920.

What the on-chain data shows

Nansen’s on-chain tracking has linked BobbyBigSize’s activity directly to Fasanara Capital’s trading operations. The account has been consistently building high-leverage short positions across various crypto assets, with ETH being the primary target.

Fasanara’s share of the combined short sits at approximately $67 million, while Abraxas Capital accounts for the remainder. Abraxas recently deposited $3 million USDC into Hyperliquid to expand its shorting exposure across both ETH and Bitcoin.

Fasanara Digital, the firm’s crypto-focused arm, launched in 2018 and has built a digital asset platform managing around $500 million. The firm is known for quantitative trading approaches, which suggests these shorts may be part of a broader, hedged strategy rather than a pure directional bet.

Abraxas Capital is known for delta-neutral and arbitrage strategies, meaning they typically try to profit from price discrepancies between venues rather than simply betting on direction. Their short position could be offset by long exposure elsewhere.

Why Hyperliquid matters here

Hyperliquid is a decentralized perpetuals exchange with on-chain settlement, meaning every trade is visible and verifiable. That’s how analysts were able to track BobbyBigSize’s positions in the first place.

Previous notable ETH shorts on the platform have exceeded $100 million at leverage ratios as high as 23x.

What this means for ETH investors

The fact that both positions are underwater adds a consequential dynamic. If ETH continues to hold above $1,920 or moves higher, the pressure to unwind these shorts could create a short squeeze dynamic, where forced buying to close losing short positions would push prices up further. Conversely, if ETH breaks below current support levels, the $108 million combined short becomes a meaningful overhang that could accelerate any downward move.

Traders should watch whether BobbyBigSize reduces or increases its position in the coming days. On-chain transparency means positions are visible in real time. If Fasanara starts closing its short, that signals the thesis may be shifting. If it adds more, the firm clearly sees further downside ahead despite the current losses.