The recent closure of a large crypto whale’s position on Ethereum (ETH) with a $710,000 loss brought attention to the risks associated with leveraged trading. The event occurred on July 10, 2025.
Details and Circumstances of Position Closure
The whale, known as the 'Three Battles ETH 100% Win Rate Whale', closed its short position on ETH resulting in a $710,000 loss. It utilized Wintermute and Coinbase exchanges, taking a 15x leveraged position on 40,000–50,000 ETH with notable unrealized profits. However, the position ended with an unexpected loss when stopped out.
ETH Market Response to the Event
The whale's activity triggered fluctuations in the ETH market, leading to significant price changes. Despite the sharp variations that can follow such large position closures, no systemic crisis was detected, indicating temporary volatility.
Risks and Complexity of Leveraged Trading
This incident emphasizes the risks associated with leveraged trading, even for seasoned traders. Historically, similar whale actions with significant shorts have led to sharp price volatility, but this instance appears to be limited to order book disruption.
The closure of the whale's position highlights the risks of leveraged trading in cryptocurrency markets, urging market participants to carefully analyze risks and situations resembling this one.
