Crypto trader Qwatio faced colossal losses of $300 million in just three hours due to a sharp increase in cryptocurrency prices.
Qwatio's losses and their reasons
Qwatio was forced to close his high-risk short positions as the market surged. His liquidated assets included 1,743 BTC worth $211 million, 33,743 ETH worth $102 million, and 15 million FARTCOIN, approximately $20 million in value. After accounting for trading fees, his net loss reached about $25.8 million.
Market impact on liquidations
Bitcoin's explosive rally past $123,000 triggered a wave of liquidations across bearish positions. Qwatio had heavily bet against the market, and as prices rose, his collateral eroded, prompting exchanges to forcibly close his trades.
Issues with over-leveraging in the crypto market
This was not Qwatio's first major loss. Just two days earlier, he suffered a similar blow—losing $98 million in short positions across BTC, ETH, and FARTCOIN due to comparable market misjudgment. Qwatio's repeated over-leveraging has made him a cautionary tale amid crypto's renewed volatility.
Qwatio's losses highlight the risks of high-leverage strategies in a volatile crypto market and serve as a lesson for other traders.
