Hyperliquid data: 96% of smart money shorted CXMT before IPO and profited, most still holding shorts.

Hyperliquid data: 96% of smart money shorted CXMT before IPO and profited, most still holding shorts.

On-chain data showed that experienced traders opened short positions on CXMT just before its Hyperliquid debut, and most are still in profit, suggesting bearish sentiment from the smartest traders.

What happened

On-chain data platform Allium has released a post-mortem analysis of the CXMT token debut on Hyperliquid. The platform recorded trader positions 36 minutes before the IPO to track market dynamics around the listing. According to the data, CXMT has been tradable for 12 days, and one minute before the IPO, the perpetual contract price was within 3% of the opening price.

Why it matters for the market

Trading activity surged significantly during the pre-IPO window. The 15-minute rolling volume jumped from $1 million the previous day to $14 million, while total pre-IPO volume reached $17.8 million. This spike indicates intense speculative interest ahead of the listing.

A notable finding is that 96% of so-called smart money traders had already opened short positions before the IPO and were in profit. Most of these traders continue to hold or have even added to their shorts, suggesting sustained bearish conviction from experienced participants.

What traders should watch

Geographic wallet data reveals contrasting positioning. Wallets from the United States and Hong Kong were predominantly long, while Korean wallets led the short side. Additionally, the majority of long positions were opened by traders who joined Hyperliquid over the weekend, implying that newer entrants may have been betting on a rally.

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