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Massive Short Position on ETH Liquidated in One Day
Quick Turnaround to Long BTC Ends in Failure, 45-Minute Position Liquidated
Shorting ETH Again Forms a “Face-Slapping” Trading Loop
The incident began on May 18, when the address 0xcddf opened a short position on 41,851 ETH with 25x leverage, with a total position value of $103 million. The opening price was $2,514, while the liquidation price was just $2,525, indicating extremely high risk. To everyone’s surprise, ETH embarked on a bullish trend that day, quickly breaking through that range, causing the position to trigger stop-losses all the way down, ultimately leading to a complete liquidation and a loss of up to $2.46 million.
Ironically, immediately after the short position was liquidated, the price of ETH dropped, marking a “perfect miss.”
Perhaps adhering to the adage “if you can’t beat them, join them,” the investor promptly reversed course and poured the remaining funds into a long position on BTC. According to Ashes tracking, he opened a long position of 166 BTC at a price of $106,580, with a leverage of up to 40 times, bringing the total position value to $17.6 million, with a liquidation price of $105,510. However, the good times were short-lived; merely 45 minutes later, BTC’s price only slightly pulled back, causing the high-leverage position to stop out, resulting in an additional loss of $175,000, leaving only about $250,000 in available funds.
After the long position failed again, this large holder did not choose to exit the market but returned to the ETH short battlefield with the remaining $250,000. According to on-chain information, he opened a short position on 2,636 ETH at a price of $2,444, still with a leverage of 25 times and a liquidation price of $2,480.
Ashes commented on his trading style as “going long and getting hit, then switching to short, and after losing on the short, going long again,” describing him as a “punching bag for the market.” No matter how the direction changes, he always finds himself on the wrong side, which is quite lamentable. This incident also serves as a reminder for investors to maintain calm judgment amidst rapid fluctuations between long and short positions, avoiding emotional trading that leads to a chain of losses.