Trader Suffers Massive Losses Betting Against Bitcoin and Ethereum
A trader on the Hyperliquid exchange faced a brutal day, getting liquidated a staggering 14 times on Wednesday while betting against the price of Bitcoin and Ethereum. Even as this article was being written, the trader had two more short positions open, teetering on the brink of yet another liquidation.
The market saw a strong rally, with both Bitcoin and Ethereum, along with other cryptocurrencies, experiencing significant gains. Bitcoin approached $110,000, climbing 3.3%, while Ethereum aimed for $2,600, surging 6.7%.
This surge is attributed to a potential ceasefire between Israel and Iran, coupled with recent U.S. employment data, which is putting pressure on the Federal Reserve to consider interest rate cuts.
A Billion-Dollar Bet Gone Wrong
The trader’s activity first came to light through analysis by Lookonchain, who labeled the investor a high-stakes “gambler” operating with extreme leverage.
“Gambler @qwatio just got liquidated for 282.8 BTC ($30.65M) and 8,282.8 ETH ($20.6M) again. He always shorts with the highest leverage when the price falls, and then gets liquidated when the price soars. He has been liquidated 15 times on BTC and 8 times on ETH!”
Following the initial tweet, the trader faced another 12 liquidations – six against Bitcoin and six against Ethereum – bringing their total liquidation count to 37.
The total value of these liquidations for the day exceeded R$1.1 billion.
Hyperdash data reveals that the trader opened two new short positions with high leverage: 40x on Bitcoin and 25x on Ethereum, putting them at immediate risk of further losses.
Their net losses in the last 24 hours amounted to $8.6 million (R$46.6 million), with a total loss of $15 million (R$81.3 million) over the past 10 days.
Wider Market Impact
The unexpected surge in Bitcoin (3.3%) and Ethereum (6.7%) caught many investors off guard.
Coinglass data indicates that over 100,000 traders were liquidated between Tuesday and Wednesday, with Bitcoin and Ethereum accounting for $123 million and $97.3 million in liquidations, respectively.
“In the last 24 hours, 106,224 traders were liquidated, totaling $344.78 million in liquidations. The largest single liquidation order occurred on Binance, in the ETH/USDT pair, valued at $8.87 million.”
Approximately one-third of these liquidations were long positions, triggered by Bitcoin’s dip to $105,130 on Tuesday night before its subsequent rebound.
This event serves as a stark reminder of the inherent volatility of Bitcoin and the dangers associated with high-leverage trading.
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