Whale Begins Taking Profit on Borrowed ETH Short Position After Partial Repayment

A whale that previously shorted ETH by borrowing has started to take partial profits by repaying part of its loan. According to BlockBeats On-chain Detection, an on-chain analyst monitored that the address began closing part of the position. From June 8 to June 9, the address deposited about $132 million in stablecoins as collateral on Aave, borrowed 35,000 ETH, and sold the ETH at an average price of $1,672. About two hours before the report, the whale withdrew 7,000 ETH from a CEX (centralized exchange) and repaid it to Aave to reduce the loan. Based on the earlier selling price, this portion of the position realized an estimated profit of about $190,000. The address still has roughly 28,000 ETH in outstanding borrowed ETH that has not been repaid, indicating the remaining short position is still being held. On-chain data showed the peak size of this borrowing-based short reached about $58.5 million.