「Burn 1 Billion UNI」 Proposal Final Vote Approaching: On-chain UNI's Largest Short Squeeze Reduces Profit by 40%

On December 19, as Uniswap’s “Unification” proposal entered its final voting phase, on-chain traders began positioning themselves. Per monitoring from HyperInsight, the largest UNI bear whale—dubbed “Shanzhai Bear Front”—has been gradually unwinding its short position since 1 PM yesterday, covering over 40% of its UNI shorts. Its current position size stands at $2.79 million, with an unrealized profit of $1.22 million (437%), an average entry price of $7.46, and a liquidation price of $5.19. Notably, the whale address “0x413c” opened a long UNI position as early as December 17. The whale then added to the position at an average price of $4.9 just two hours before the final vote, briefly hitting a peak unrealized profit of over 50%. However, amid this morning’s price dip, the whale exited at breakeven, wrapping up the trade with a modest $36,000 profit. On-chain data shows that following the news, Polymarket’s prediction market saw the “Yes” option for “Uniswap protocol fee switch activation by December 31, 2025” surge 69%. More than 20 addresses purchased this option, pushing the current implied probability up to 85%. As of 4 PM yesterday, Uniswap founder Hayden Adams’ submitted “Unification” proposal has entered the final governance voting phase. Voting is scheduled to kick off at 11:30 AM Beijing time on December 20 and wrap up on December 26. If the proposal passes, it will take effect 2 days after a lockup period: burning 100 million UNI tokens and activating the mainnet v2/v3 fee switch, with associated fees used to continuously burn UNI. Driven by the news, UNI saw a 10% short-term price surge.