In leveraged trading, timing is crucial. For the wallet identified as 0xc3ed, a decisive directional bet led to an impressive surge for some, but a staggering $32.5 million loss for others.
On September 22, the on-chain monitoring service Lookonchain reported that the wallet 0xc3ed57a7a8fa374af47eba5dd713bc2946f800dd faced liquidation four times within a short span of 14 hours, resulting in the liquidation of 375.8 Bitcoin as Bitcoin’s price surged into the $85,000 to $87,000 range.
The transactions took place on a perpetual futures exchange tracked by hypurrscan.io, where leverage can amplify both gains and losses. As Bitcoin’s value increased rather than decreased, the short positions began closing out one after another.
Each liquidation indicates that the trader attempted to re-engage with the short positions, intensifying their bet despite the rising market. However, Bitcoin continued its upward trajectory.
The total loss amounted to 375.8 BTC, equivalent to approximately $32.55 million at that time. Following the four liquidations, the account still retained around $1.4 million.
Earlier in September, the same wallet executed four successful long positions on Bitcoin, achieving a flawless win record. This resulted in four wins and realized profits of $9.26 million.
The dynamics of the short squeeze that led to these liquidations are well-known in the realm of crypto perpetuals. When a significant short position is at risk of liquidation at a predictable price, market makers and algorithmic traders have an incentive to drive the price up to that point. This series of liquidations then creates new buying pressure that can push prices even higher, potentially causing further liquidations. The four liquidations that occurred within 14 hours align perfectly with this pattern.
Unlike traditional futures contracts, perpetual futures do not have an expiration date. Traders can maintain leveraged positions indefinitely as long as their margin requirements are met.
Monitoring platforms like hypurrscan.io and Lookonchain have become indispensable for market analysts, as they provide visibility into large leveraged positions, signaling potential volatility in the market.
The remaining $1.4 million indicates that the trader wasn’t entirely depleted. Their prior success of $9.26 million demonstrates notable trading skill. However, the $32.55 million loss serves as a reminder that skill and leverage can only withstand market fluctuations up to a point.