Short seller Culper bets against ether, BitMine citing 'death spiral' risk

Short seller Culper Research issued a report arguing that Ethereum's tokenomics are "impaired" following the December 2025 'Fusaka' upgrade, which flooded the network with excess blockspace, causing transaction fees and validator staking yields to drop sharply. Culper suggests this creates a negative feedback loop leading toward a "death spiral" due to reduced network security and staking demand. The firm also noted that Ethereum co-founder Vitalik Buterin has been selling ETH, contrasting with bullish views from figures like Tom Lee, chairman of treasury firm BitMine. Culper dismisses rising activity metrics cited by bulls, attributing the surge largely to address poisoning scams. The short thesis specifically targets BitMine (BMNR), which holds substantial ETH holdings estimated to be 45% underwater, resulting in billions in unrealized losses.

(Source：CoinDesk)