BitcoinWorld
Whale Loses $4.91M in Six Consecutive Liquidations: The Crushing Cost of Leverage
A cryptocurrency whale has lost $4.91 million after facing six consecutive liquidations on a massive 4,500 ETH long position. This event marks the largest on-chain liquidation of the day, according to Hyperinsight. The most recent liquidation involved a 25x leveraged long position on Ethereum. The platform forcibly sold 1,620 ETH at $2,250, causing a $3.67 million loss. The address still holds a long position worth $9.55 million.
Whale Liquidation Event: A Deep Dive
The whale address, starting with 0xe1d3, entered a high-risk trade. The trader used 25x leverage on Ethereum, amplifying both potential gains and losses. When the market moved against the position, the platform liquidated the collateral. This process repeated six times, erasing nearly $5 million. This liquidation event highlights the dangers of high leverage in volatile markets.
Ethereum prices dropped sharply during the liquidation period. The price fell below $2,250, triggering the forced sale. Such rapid declines often catch over-leveraged traders off guard. The whale’s remaining $9.55 million position remains at risk if prices…
