Crypto trader known as @qwatio faced one of the largest liquidations in recent memory, losing $334 million in just three hours as Bitcoin surged.
The Trader's Dramatic Downfall
The trader, operating from wallet address 0x916E and tracked by Lookonchain, made aggressive bets against the upward market momentum. His financial troubles began days before the liquidation, with an initial short position resulting in a loss of $16.28 million.
Trading Strategy and Liquidations
Undeterred by prior losses, the trader added $10 million and went short on 1,273 BTC and 33,743 ETH using high leverage. However, instead of a market reversal, Bitcoin continued to rise, leading to the liquidation of positions amounting to $334 million.
Overall Market State
The trader was not alone in their plight, as Bitcoin's 15% rise triggered widespread liquidations totaling over $730 million. Concurrently, other traders like AguilaTrades managed to survive and turn their positions into profits.
Recent events highlight the high volatility of the cryptocurrency market and the risks associated with using high leverage in trading. This case underscores the need for caution.
