Two Binance-funded wallets opened $1.25 million longs on Hyperliquid, triggering leveraged gains and heavy Open Interest buildup.
If the $0.031-$0.038 Fibonacci zone holds, a rebound to $0.05-$0.09 is likely; below $0.03, bearish momentum could resume.
Zerebro [ZEROBRO] mooned nearly 3X on the 11th of October as the market reeled from the aftermath of a massive crash last Friday.
The altcoin rallied from $0.01 to $0.05, about a 430% run at the peak of the upswing, before closing the daily trading session with a 264% gain.
As of writing, however, it gave back more of the gains and traded at $0.03 amid claims that the pump was manipulated by a familiar whale on Hyperliquid DEX (decentralized exchange).
According to a pseudonymous on-chain analyst, MLM, two newly created wallets with $1.25 million opened a long position with 1X leverage on Hyperliquid.
The analyst noted that the wallets were funded from Binance and a wallet that made over $1 million during the JELLY JELLY incident in March.
In fact, that earlier incident involved a whale short-squeeze that forced Hyperliquid to halt JELLY JELLY perpetual trading, costing the DEX’s vault over $13 million in losses. As a result, the analyst cautioned about the ZEROBRO pump.
“High chance these are Binance-linked “insider” wallets – be careful trading ZEREBRO, the pump looks very sketchy.”
On the price charts, the altcoin’s pullback tagged the golden zone around $0.31-0.38. If defended, the dump could be eased, and likely recovery towards $0.05 or 0.09 could follow suit.
But the market is yet to fully digest the recent crash, and more clarity could be likely by this week.
In case the China-U.S. tariff war escalates and Bitcoin [BTC] slips lower, ZEROBRO could erase the entire gain.
Moreover, the Open Interest jumped to a six-month high of $82 million during the manipulated and leverage-driven pump.
After the headlines that the upswing was not organic, long positions dropped by nearly 10% to 60%.
The shift reflected growing caution among traders wary of another forced liquidation cycle.
That said, ZEREBRO saw about $2 million in Daily Exchange Netflow on the 11th October, suggesting profit-taking spiked after the upswing.
With whale caution, profit-taking, and broader sentiment post-market flash crash, the altcoin’s pullback could go below $0.03.
