🐋 Whale’s High-Leverage Short on SOL Faces Heavy Liquidation Risk as Price Surges

A large trader — often referred to as a “whale” — is reportedly facing significant losses after opening a high-leverage short position on Solana (SOL) just before the asset’s recent rally.

Instead of retracing, SOL surged past key resistance levels, putting extreme pressure on leveraged short positions and triggering a wave of liquidations across futures markets.

Let’s unpack what’s happening 👇

đŸ’„ The Setup

On-chain analytics show a major wallet opened a short position exceeding $8 million in size when SOL hovered near $168 — expecting a price correction.

However, the market had other plans.

SOL rallied above $174, invalidating the bearish setup and pushing unrealized losses well past -30% for traders using 10x–20x leverage.

In short: The whale’s attempt to profit from volatility has backfired — a classic futures squeeze.

📊 Solana Market Snapshot

Metric Value

Current SOL Price: ~$175

24h Change: +2.8%

Liquidations (24h): Over $12.6M in short positions

Funding Rate: Slightly positive — favoring long bias

Key Support: $168

Key Resistance: $180

🔍 Why the Squeeze Happened

1. High Leverage + Tight Range: When too many traders pile into short positions, a small upward move can trigger a rapid cascade of liquidations.

2. DeFi Momentum: Solana’s growing TVL (now above $5B) and liquid staking trend are fueling long-term bullish sentiment.

3. Market Psychology: Whales sometimes underestimate how fast short squeezes can develop in thin weekend or low-volume sessions."

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