In a striking example of how high-risk trading and emotional decisions can wreak havoc, a prominent Ethereum whale has just witnessed a catastrophic downfall — turning a $2.96 million portfolio into just $250,000 in a matter of two days.. $ETH
According to on-chain investigator Yujin, the wallet starting with 0xcddf engaged in a series of highly leveraged trades that ultimately ended in disaster.
It all began on May 18, when the trader shorted 41,851 ETH at $2,514 using 25x leverage, placing their liquidation point dangerously close at $2,525. ETH unexpectedly rallied, liquidating the position and wiping out $2.46 million — all in one move. Ironically, ETH reversed course shortly after the liquidation.
Hoping to recover quickly, the trader then went long on BTC, placing a $17.6 million bet at $106,580 with 40x leverage. But within 45 minutes, BTC shifted downward, and the position was liquidated — reducing the wallet to just $250,000.
Incredibly, the trader made one last attempt: shorting ETH again at $2,444 with 25x leverage. Once more, the market moved against him. Many in the community are calling this a “punching bag” strategy — constantly flipping sides, but always landing on the losing end.
This cautionary tale is more than just a headline — it's a powerful reminder of the risks tied to high leverage and emotionally driven decisions.
Takeaway:
In crypto, speed and volatility are unforgiving. Leverage can amplify profits — but it also magnifies every mistake.
Control your emotions. Manage your risk. And most importantly, never trade out of desperation.