Nearly nine in ten traders with open NVDA positions on Phantom are positioned long ahead of Nvidia's upcoming earnings report. The figure — 88.7% of traders holding NVDA positions on the platform — offers a snapshot of how crypto-native traders are approaching the chipmaker's results.

What Phantom's data shows

Phantom, best known as a crypto wallet, has expanded into a full-fledged trading terminal that lets users trade perpetual futures on synthetic equity contracts. Its NVDA-USD pair, which settles entirely in USDC, is one of the platform's most active markets. Nobody on Phantom owns actual Nvidia shares; participants are trading price exposure with up to 10x leverage, a feature the platform has offered since November 2025.

The 88.7% long ratio is not a one-off data point. In late June, Phantom reported that 89.3% of NVDA traders were long. Over roughly two months, the sentiment measure has moved by less than a percentage point, meaning traders on the platform have remained consistently bullish on Nvidia.

Why crypto traders are betting on a chip company

Nvidia's earnings are among the most closely watched events in public markets. The company is one of the largest weights in the S&P 500, and its data-center business has become the broadest publicly available gauge of how much the world's biggest technology companies are spending on AI infrastructure — reports that have historically produced outsized single-day moves in the stock. That profile is exactly what perpetuals markets reward: a scheduled, high-volatility event.

Powered by Hyperliquid's infrastructure, the platform provides continuous market access and real-time trading, meaning users can trade NVDA around the clock rather than being limited to traditional US market hours.

Leverage is the other draw. A 10x leveraged long on Nvidia means a 5% move in the stock translates to a 50% gain on the position — or a 50% loss if it moves the other way.

The liquidation risk

The combination of roughly 89% long positioning and 10x leverage available is what makes liquidation cascades a concern. If Nvidia's earnings disappoint, even modestly, the price of NVDA-USD on Phantom could drop quickly. Leveraged long positions would begin hitting liquidation thresholds, forcing automated sell-offs that push the price down further and trigger additional liquidations.

Perpetual futures markets are particularly susceptible to this dynamic because they do not have circuit breakers the way traditional exchanges do. Continuous trading means continuous risk. A weak earnings release landing after traditional market hours could create a scenario in which Phantom traders face volatility with no corresponding traditional market to anchor prices.

These venues also sit outside the traditional securities-market plumbing. There is no clearinghouse, no SIPC coverage, and no exchange-level surveillance of the kind that stands behind listed equities — and US derivatives regulators have already engaged with this corner of the market, charging Hyperliquid Labs in September 2025 with operating an unregistered derivatives platform.

The dynamic extends beyond a single earnings cycle. Traders on these platforms do not receive shareholder rights, cannot vote on corporate governance, and do not collect dividends. What they get is pure price speculation with crypto-native settlement rails. In the run-up to the print, the observable signals are the long/short ratio itself, funding rates on the NVDA-USD pair, and any gap between Phantom's synthetic price and the listed NVDA share price while traditional markets are closed.