Whale reduces LIT short, still holds $6M position near liquidation

This whale's partial retreat is a notable risk-off signal after absorbing a six-figure loss, yet the remaining short position is still dangerously close to being liquidated if price ticks up just 2.7%. The TWAP buyback suggests a deliberate effort to manage exposure rather than a full capitulation, but the unfinished 27% leaves the market guessing whether the whale will complete the unwind or let the position ride. For LIT traders, the key tension is whether this whale's de-risking precedes broader selling or is merely a defensive move that could flip to buying pressure if liquidation forces a cover. Watch whether the remaining position gets closed or defended, as that will clarify the whale's conviction and near-term supply dynamics.