Trader known as “qwatio” has become the focus of investigation by analytics firm Lookonchain following significant losses in the cryptocurrency market.
Trader's Asset Liquidation
Recently, trader “qwatio” experienced a partial liquidation of 8,000 ETH, amounting to $20.11 million, as well as 280 BTC valued at $30.4 million. These events sparked discussions about possible insider trading, as his investments were leveraged at 50x.
Continued Risk and Lack of Support
The analysis revealed that the trader continued to engage in 50x leveraged positions, resulting in the liquidation of over 160,000 ETH, significantly impacting the liquidity provider. As a result, Hyperliquid capped the maximum leverage for ETH to 25x to prevent further issues. Nonetheless, the trader persisted with risky bets, eventually leading to new losses and liquidations.
Parallels with Another Trader
The story of trader “qwatio” draws parallels with another notable market participant, James Wynn, who also used high leverage in his trades and faced significant losses. The analytics firm noted that James Wynn lost nearly all of his $87 million profit in just five days.
Thus, the story of trader “qwatio” highlights the dangers of high-risk trading strategies in the cryptocurrency market, which can lead to substantial financial losses.
