This week, there were significant losses for trader qwatio, who lost $12.5 million due to eight liquidations, underscoring the dangers of high leverage in volatile markets.
Summary of qwatio's Losses
Trader qwatio found himself in dire straits, losing $12.5 million across eight liquidations in a week, as reported by blockchain analytics service Lookonchain. About $10 million was lost in just six liquidations between June 23 and June 26.
Liquidations in the Ethereum Market
In the most recent liquidation on Monday, a 25× leveraged Ethereum (ETH) position was partially closed at a liquidation price of $2,534. This position alone resulted in multimillion-dollar losses. The same account also had a Bitcoin (BTC) position that was margin-called, with a new liquidation price set at $109,170 per coin.
Contrasting Stories Amid Losses
Amid the losses of qwatio, trader James Wynn also made headlines by opening a 40× short position in BTC and quickly flipping to a long position, narrowly escaping liquidation. Meanwhile, another anonymous trader turned $6,800 into $1.5 million in profit over two weeks, highlighting the disparity between high-risk gambling and successful strategies.
The qwatio saga serves as a stark warning for traders about the risks associated with margin trading. Such events may prompt regulators to reconsider margin and liquidation rules.
