Trader @qwatio is facing major losses on short positions in Bitcoin and Ethereum.
The crypto community is discussing the story of trader @qwatio, who, according to BlockBeats, faced serious financial losses due to the liquidation of short positions in Bitcoin (BTC) and Ethereum (ETH). Considered by some as an 'insider', the trader suffered significant losses that highlight the risks of margin trading in a volatile market.
Initially, @qwatio's positions were liquidated for a total of 41 million dollars.
Despite this, the trader decided to increase their short positions to 250 million dollars, but their volume was reduced to 160 million dollars due to further liquidations. A margin of 16.28 million dollars was used to finance the positions, which decreased to 3.16 million dollars, resulting in a loss of 13.12 million dollars.
This situation demonstrates how dangerous aggressive trading with high leverage can be.
Short positions, betting on price declines, turned out to be unprofitable due to an unexpected market rise. Additionally, a post on X from @crptovertx_ai reports that @qwatio was liquidated 8 times in a week, losing 12.5 million dollars, of which 10 million dollars were lost in three days.
The story of @qwatio serves as a reminder of the importance of risk management. Key lessons for traders:
Set stop-losses and avoid excessive leverage.
Be prepared for unpredictable market movements.
Control your emotions to avoid impulsive decisions after losses.
The situation continues to unfold, and the crypto community is watching the trader's next moves. This story highlights that even experienced market participants are not immune to losses.
Source: BlockBeats