Crypto whale @qwatio reports significant losses exceeding $15.48 million from betting on price declines of Bitcoin and Ethereum.
Losses by @qwatio
@qwatio, known as an 'insider' trader, has incurred losses exceeding $15.48 million from leveraged Bitcoin and Ethereum positions. As of July 2025, his remaining open positions total $47.34 million. Key positions include a 40x leveraged short on 368 BTC worth $40.05 million and a 25x leveraged short on 2,846 ETH valued at $7.28 million.
Market Impact
The liquidation of @qwatio's positions induced forced buying in derivatives and spot markets, significantly impacting short traders. Resulting price volatility served as a key trigger for a market-wide short squeeze, specifically in Bitcoin and Ethereum.
Leverage Risks
Despite these turbulent shifts, there is no direct institutional funding affected, with losses connected only to individual trading ventures. Analyses note that this event stands separately from major industry funds or grants. Historically, large-scale liquidations due to excessive leverage have precedent, which previously triggered price spikes and short squeezes during significant crypto market movements.
The loss experience of @qwatio highlights the need for caution when trading with high leverage, raising questions about regulatory oversight and technological improvements for trading platforms.
