Michael Trieu and ZEC Trading Strategy on Hyperliquid: When $2.21 Million Turns Into $10.5 Million

The cryptocurrency market has always been a place where bold decisions can yield enormous profits or lead to painful losses. In November of last year, a large-scale trader known as Michael Trieu executed a series of strategic long positions on the derivatives platform Hyperliquid, focusing on the cryptocurrency ZEC (Zcash). Michael Trieu’s actions not only generated impressive gains but also had significant market impacts, providing valuable lessons in risk management and trading psychology.

Michael Trieu’s Entry Strategy – Calculation and Timing

In early November last year, Michael Trieu began building a long position on Hyperliquid with an initial capital of $2.21 million. Instead of making a large bet at a fixed price, he dispersed orders within two main price ranges: $497–$499 and $597–$595. This approach demonstrates careful planning, aiming to leverage price volatility within the trading range to optimize average entry points.

This method reflects a systematic trading strategy, not impulsive decisions. Michael Trieu appeared to analyze support and resistance levels of ZEC thoroughly and prepared to build a strong position during volatile periods.

Increasing Account Value with 5x Leverage – Success and Risks

Shockingly, within just one week, Michael Trieu’s account value surged to over $10.5 million. Starting from $2.21 million, he generated nearly $8 million in profit. This figure is enough to leave anyone in the industry in awe.

This rapid growth was driven not only by natural price appreciation of ZEC but also by the use of leverage. Michael Trieu’s activity triggered significant upward movements in ZEC on Hyperliquid, with large swings occurring within 24 hours of opening his position. His substantial buying pressure created a domino effect, attracting other traders, increasing buying pressure, and pushing the price higher.

However, this success also carried inherent dangers. 5x leverage means that a 20% price reversal can wipe out the entire capital. Michael Trieu understood this well, making risk management a critical factor.

Risk Management: Stop-loss and Profit-Taking Strategies

After the market corrected, Michael Trieu demonstrated disciplined risk management. From November 9 to 10, he began taking partial profits by selling 5,000–15,000 ZEC. This move helped lock in some gains and reduce exposure to risk.

Currently, Michael Trieu holds a long position of 55,000 ZEC with 5x leverage, at an average entry price of around $555.4. To prepare for future trades and maintain liquidity, he transferred $500,000 into an on-chain address as a reserve fund. This move shows a trader who not only seeks profits but also understands the importance of capital preservation.

ZEC Market Sentiment – When Fear Index Hits Extreme

During the time Michael Trieu built his position, the Crypto Fear and Greed Index dropped to 10, signaling extreme fear among investors. This index reflects broader market sentiment and often influences trading behavior, especially during high volatility phases.

Interestingly, Michael Trieu demonstrated the traits of a skilled trader: when the market is engulfed in fear, it’s often the time to step in and seek opportunities. Extreme fear can lead to excessive sell-offs, creating good entry points for risk-takers.

Lessons from Two Whales – Success and Failure on Hyperliquid

Michael Trieu’s story isn’t the only big player’s on Hyperliquid. Another large trader, who once held the largest long position on the platform, experienced a very different outcome. This whale reduced his position after ZEC’s price fell below $600, incurring a loss of approximately $960,000, with his position size shrinking from $37.01 million to about $5 million.

This contrast highlights the importance of three factors: timing, risk management, and adaptability. Michael Trieu entered at the peak of fear, while the other whale may have entered too early or failed to manage risk effectively. These opposing results offer valuable lessons for all traders on derivatives exchanges.

Funding Trends and the Future of ZEC on Exchanges

In a broader context, primary market funding increased by 104.8% in October, with notable reinvestments into prediction markets and stablecoin infrastructure. This trend indicates that the crypto community is shifting its investment focus toward more innovative financial tools.

Reinvestments into prediction markets and stablecoin infrastructure could enhance ZEC’s utility and acceptance in the future. As the market continues to evolve, traders like Michael Trieu will keep seeking new opportunities. Currently, ZEC is trading at $233.98 (as of today), lower than the high price at which Michael Trieu traded in November, illustrating the market’s unpredictable nature.

Conclusion

Michael Trieu’s story on Hyperliquid exemplifies the power of strategy, risk management, and trading psychology. From an initial capital of $2.21 million to an account value of $10.5 million, he proved that savvy traders can generate significant profits even in the most volatile markets.

However, this journey also underscores the inherent risks of leveraged trading. Not all traders can succeed like Michael Trieu, and those looking to participate must thoroughly understand the associated risks. Whether you are an experienced investor or a newcomer, learning from cases like this and applying those lessons to your own strategy is essential to navigating the ever-changing crypto landscape.