Bitcoin Slump Could Prompt More Whale Liquidations After WBTC Longs Lose About $1.45M

  • Whale liquidations totaled about $1.45M on Aave after BTC dropped below $104,000

  • On-chain traces show transfers of 14.8 ETH and 1.28M USDC tied to the liquidated address

  • Analytics (Hyperdash, Lookonchain) report larger whale exposure up to $158M across BTC and ETH positions

whale liquidation: Top DeFi whale wiped out $1.45M after BTC plunged below $104K — read details, on-chain data and market context. Stay informed with COINOTAG.

What caused the recent whale liquidation on Aave?

Whale liquidation occurred when Bitcoin’s price dropped below critical support levels, forcing automated collateral liquidations on Aave. On-chain traces and security firm PeckShield show long positions using WBTC, ETH and LINK as collateral were sold to cover margin shortfalls, producing a roughly $1.45 million realized loss.

How did leveraged WBTC, ETH and LINK positions lead to forced sell-offs?

Decentralized lending protocols like Aave enforce margin requirements. When BTC slid below the whale’s liquidation thresholds, the protocol automatically seized and sold collateral to repay debt. Etherscan data shared by PeckShield shows the address moved more than 14.8 ETH (about $54,700 at the time), 1.28 million USDC, and executed several interactions with Aave-related contracts. Analytics platforms Hyperdash and Lookonchain detail larger portfolio exposure that amplified risk via high leverage.

Frequently Asked Questions

How much did the whale lose in the October 2025 liquidations?

The primary liquidation event recorded by PeckShield and on-chain explorers totaled approximately $1.45 million. Other related wallets reported separate liquidations of around $1.5 million and one account showing unrealized losses exceeding $10 million after rapid market moves.

Why did Bitcoin’s drop trigger so many liquidations?

Auto-liquidation mechanisms on lending and derivatives platforms rely on collateral valuations; a sudden BTC decline reduces collateral value below required thresholds. When prices breached support levels (notably near $104K and $108K), leveraged long positions were forcibly closed, producing cascades of sell orders and further downward pressure.

Automated collateral liquidations sold assets held as margin to cover leveraged losses; PeckShield reported total exposure for the address at about $1.45 million based on shared Etherscan traces. On-chain activity also indicates interactions with the Aave Treasury and DeFi builders’ contracts during the unwind.

Which on-chain and analytics sources reported the events?

Primary reporting and verification used data from PeckShield, Etherscan, Lookonchain, Hyperdash and market metrics from Coinglass. The Fear and Greed Index and funding-rate monitors were used to gauge market sentiment. All sources are referenced here as plain text for verification.

Market context and technical signals

Bitcoin fell about 5.3% in 24 hours around the liquidations, dipping below a multi-month low near $104,000. Market trackers placed resistance between $107,500 and $110,000 — levels that correspond to the 200-day simple moving average (SMA). Technical analysts flagged a breakdown of the SMA combined with a Head and Shoulders pattern as bearish short-term signals, increasing the likelihood of further forced deleveraging among highly leveraged accounts.

Lookonchain flagged another wallet down over $10 million on long positions in Ethereum and Bitcoin; the account had previously realized profits near $5.5 million that evaporated in the market reversal. Hyperdash reported one whale’s aggregated leveraged exposure rose to approximately $158 million, including 19,894 ETH (valued at about $80.3 million) and 699 BTC (worth roughly $77.6 million), with leverage up to 15x on some BTC longs.

Key Takeaways

  • Automated protocol risk: Decentralized platforms enforce margin rules that can rapidly liquidate overleveraged positions during sudden price moves.
  • Concentration of exposure: Single whale accounts can hold outsized leveraged positions (Hyperdash reported $158M exposure), magnifying market moves.
  • Sentiment and macro triggers: News events and macro developments, including tariff headlines and policy remarks, can spark abrupt price swings that trigger cascades.

Conclusion

COINOTAG reporting (Published: October 17, 2025. Updated: October 17, 2025) — On-chain data and security firm reporting confirm that a whale faced roughly $1.45 million in liquidations on Aave after BTC broke key support levels. The episode underscores how high leverage and concentrated exposure can produce outsized losses in volatile markets. Traders should monitor margin levels, protocol rules and macro headlines to manage risk going forward. For continued updates, consult COINOTAG coverage and referenced on-chain analytics platforms.

Author/Organization: COINOTAG

Source: https://en.coinotag.com/bitcoin-slump-could-prompt-more-whale-liquidations-after-wbtc-longs-lose-about-1-45m/