Hayes Dumped Pendle and Ethena at a Loss… Then Bought Back Cheaper: Here’s the Crypto Whale Playbook
A sharp move from BitMEX co-founder Arthur Hayes has triggered new debate across the market about how whales trade during fear-driven selloffs. Two weeks ago, Hayes sold Pendle, Ethena (ENA) and EthFi at a 20% loss, only to buy back over $3 million worth of the same assets 30–40% cheaper after the market dipped further.
Retail traders often interpret selling at a loss as panic or weakness. But for whales, this is part of a larger, calculated playbook; one that takes advantage of volatility, liquidity shocks and emotional reactions from the broader market.
What you'll learn 👉
Why Whales Sell Losers, And Why Retail Rarely Does
Hayes’ move shows a pattern that repeats every cycle:
big players sell early weakness to avoid deeper drawdowns, even if it means taking a temporary loss.
For example:
- Hayes sold with a ~20% loss
- Prices then fell another 30–40%
- He re-entered far lower, improving his position dramatically
In whale logic:
a controlled 20% loss now is better than being trapped in a 50% crash later.
Retail traders usually do the opposite. They hold through drawdowns, wait for “break-even,” and watch opportunities slip by. Whales avoid this trap because they value capital efficiency, not emotional attachment to entries.
hayes dumped pendle, ethfi and ena at losses 2 weeks ago then bought back $3m worth at 30-40% lower. taking a 20% loss to re-enter 40% cheaper beats holding through a 50% drawdown. whales sell fear to buy panic. you hold panic hoping for breakeven
— aixbt (@aixbt_agent) November 29, 2025
This is why Hayes’ strategy worked:
he freed up liquidity during early weakness and deployed it during full-blown panic.
How Whales Manufacture “Fear Sells”
A key point Hayes’ example reveals is this:
whales don’t just react to fear, they often help create it.
When a large holder sells into weakness:
- It accelerates downside
- It triggers stops and liquidations
- It increases panic
- It forces retail holders to exit
Once the market enters a capitulation zone, whales step back in and accumulate quietly.
As Sera noted on X, this “fear sell → panic buy” model is exactly how larger players outperform during volatile periods.
How to Spot Whale Fear-Sell Signals Before the Bounce
The on-chain analyst aixbt summarized the exact signals that often appear before whales buy back cheaper. These signals show up every time smart money prepares to re-enter:
1. Large Outflows to Exchanges From Known Wallets
Whales send tokens to exchanges to sell into liquidity.
This is usually the first warning sign.
2. Sharp Price Drops on High Volume
A controlled cascade begins.
Retail sees this as collapse, whales see it as preparation.
3. Negative Funding Spikes
Futures markets flip deeply negative.
This indicates aggressive shorting and trader capitulation.
4. Stablecoin Inflows Reversing the Move
Once selling pressure exhausts, fresh USDT/USDC flows in.
This often marks the exact moment whales start buying back.
5. Token Unlock Schedules
Whales monitor unlocks weeks ahead.
If they expect fresh supply entering the market, they position early.
In Hayes’ case, all of these conditions lined up almost perfectly.
Read also: Is Bitcoin About to Crash Again? $BTC Chart Forms One of Its Most Bearish Patterns Yet
Why This Strategy Works for Whales but Not for Retail
Retail traders tend to hold because:
- They don’t want to realize a loss
- They trade emotionally, not structurally
- They lack stablecoin reserves to rotate
- They fear missing the bounce
- They have no visibility into unlock timelines or whale wallets
Whales, on the other hand:
- Trade with liquidity buffers
- Cut losers early
- Re-enter during peak fear
- Study on-chain signals
- Treat every position as replaceable
Hayes buying back 40% cheaper after selling 20% lower is a textbook example of why professional traders outperform. They act early (not emotionally) and rotate capital aggressively.
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