Major Long Position in ETH Liquidated Amid Market Stress

In the past hour, a high-leverage crypto trader saw four large liquidation events wipe out a substantial portion of their position. According to on-chain data shared by Hyperbot and cited by Odaily, the trader’s long exposure in Ethereum (ETH) plunged from approximately 4,500 ETH to just 1,863 ETH — currently valued at around US $5.73 million.

The position had been opened at an average entry of US $3,106.23 per ETH using 25× leverage, and carried a liquidation threshold near US $3,061. This forced unwind of over half the position signals elevated margin stress at a time when broader crypto liquidity metrics appear weak.

Why this matters

A liquidation of this size in a major asset like ETH signals rising structural risk in the derivatives layer of crypto markets — even when asset fundamentals still look intact.

High leverage magnifies market moves: minor dips or funding-rate spikes can trigger forced exits, adding to downward pressure.

This event comes amid reports of several hundred million dollars in liquidations across the market in recent hours.

My take

If you’re navigating crypto markets now, this episode underscores two important themes:

1. Risk control matters more than ever — Leverage builds fast, but unwinds faster when volatility hits.

2. Watch derivatives & liquidity signals — Spot performance may lag or reverse when forced deleveraging begins.

This content is for informational purposes only, not investment advice.