- Whale loses $3.5M in liquidation but rebounds with 40x Bitcoin long for $1.06M profit.
- Gambler recovers $4.96M losses with a single $9M profit on a 40x Bitcoin short trade.
- AguilaTrades loses $35M in two weeks through failure to take profits on winning positions.
Recent market volatility has created dramatic outcomes for high-leverage Bitcoin traders. Some lost tens of millions, while others recovered previous losses through aggressive position sizing.
Whale address 0x7e8b suffered liquidation for 965 BTC ($97.5 million) and 12,024 ETH ($26.22 million) during the market crash, losing over $3.5 million in the forced closure. However, the trader immediately re-entered with a 40x long Bitcoin position that currently shows $1.06 million in unrealized profits.
Contrasting Fortunes Highlight Leverage Trading Extremes
On the other hand, gambler 0x51d9 pulled off a remarkable comeback through precise timing and disciplined risk management. After accumulating $4.96 million in losses across six earlier trades, the investor executed a perfectly timed 40x short on Bitcoin, closing it near the bottom, realizing over $9 million in profit. This one trade, in addition to covering all previous losses, generated enormous additional profits.
The profitable short trade illustrates how leverage can be used to profit by skilled or lucky traders who correctly predict market direction. However, the trader’s earlier losing streak underscores the inherent difficulty of consistently profiting with leverage, even for those who eventually land a massive win.
Whale Loses $35 Million In Two Weeks
The most striking example is the AguiaTrades case, which lost over $35 million in just two weeks despite multiple opportunities to earn gigantic profits. Starting with $39.18 million of USDC sent from Bybit to Hyperliquid to trade Bitcoin perpetual contracts, the balance in the trader’s account dropped to just $4.09 million.
AguilaTrades lost, according to Lookonchain, due to the repeated inability to gain profits on winning positions. On June 9, unrealized profits reached a record high of $5.76 million; however, a drop in Bitcoin’s price, caused by Israel-Iran tensions, led to a position closure, resulting in a $12.47 million loss. The same happened on June 15 when $10 million in unrealized profits disappeared into a $2.95 million realized loss.
The cycle was repeated again on June 20 when $3.2 million of unrealized gains again turned into a loss of $17 million when Bitcoin dropped and had to be closed out. After three straight losing long trades, AguilaTrades shorted Bitcoin, losing $2.33 million as the market rebounded.
The AguilaTrades example illustrates common psychological trading errors, including failure to take profits, overleveraging, and revenge trading. The trader’s inability to take profits despite multiple opportunities to close with handsome gains, due to high leverage exposure, led to enormous losses.
Related: Altcoin Season Index Drops to Lowest Point in Two Years: Here’s What History Tells Us
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Source: https://coinedition.com/whale-loses-3-5m-in-btc-liquidation-rebounds-with-40x-long-for-1-06m-profit/