WBTC Whale Sells 9,516.8 ETH in Flash-Loan Circular Loan, Aave Debt Drops to $121M but Health Factor 1.12 Signals Looming Liquidation Risk

COINOTAG reported on November 19 that on‑chain analyst Yu Jin tracks a whale deploying a flash loan–based circular loan strategy to unwind leverage. The entity trimmed risk by selling 9,516.8 ETH to repay 29.36 million USDT, at an average price near $3,085 per ETH. On Aave, the borrowed exposure fell from $150 million to about $121 million, while the position’s health factor rose from 1.04 to 1.12—still below a safety threshold and not deemed fully secure. The remaining collateral comprises 1,560 WBTC (roughly $144 million) and 9,000 ETH (about $28.04 million). If BTC and ETH continue to slide, the whale may need further liquidations to pare down the exposure. Investors should monitor the health factor, Aave debt, and the evolving WBTC/ETH collateral balance for risk signals.

Source: https://en.coinotag.com/breakingnews/wbtc-whale-sells-9516-8-eth-in-flash-loan-circular-loan-aave-debt-drops-to-121m-but-health-factor-1-12-signals-looming-liquidation-risk