User “Insider Brother” @qwatio had a short position worth 210 million USD liquidated within 1.5 hours, nearly losing all previously accumulated profits.
Currently, this user only holds short Bitcoin positions worth 58 million USD with a margin of 1.58 million USD, concentrating all expectations on a position with a cost basis of 121,176 USD.
MAIN CONTENT
The short position of @qwatio was quickly liquidated, causing losses of tens of millions of USD.
This user once had a profit of 26 million USD but has lost nearly all due to unsuccessful short orders.
Who is @qwatio and how is this user's short position affected?
This is a cryptocurrency whale with the account “Insider Brother” who previously recorded a profit of 26 million USD from short trades, but recent closures have caused this amount to nearly vanish, according to reports on July 14, confirming this through on-chain data and trading records.
According to Yujin, “@qwatio's 210 million USD short position was liquidated in just 90 minutes, reflecting the severe volatility in the cryptocurrency market.”
Yujin, Cryptocurrency Market Analyst, 14/7/2024
Why are @qwatio's short positions experiencing severe losses?
High-cost Bitcoin short orders make @qwatio susceptible to losses when BTC price exceeds this threshold. The rapid closure of positions demonstrates strong market volatility causing short positions to be liquidated, resulting in significant capital losses.
What is the current status of @qwatio's positions and trading strategy?
This user currently holds only short Bitcoin positions worth 58 million USD and concentrates all margin of 1.58 million USD on a position with a cost basis of 121,176 USD. This is a high-risk strategy as BTC price often fluctuates below this level, increasing the likelihood of liquidation.
Is concentrating margin on a Bitcoin short position likely to succeed?
The risk of concentrating margin on a single position is very high, especially for Bitcoin which has very high volatility. Financial experts warn that this strategy can easily lead to bankruptcy if the market does not follow predictions.
“Concentrating margin on a short position in Bitcoin's unstable market is a pathway that easily leads to heavy losses.”
Dr. Nguyen Thanh Long, Financial Analysis Expert, 2024
Why did closing a short position of 210 million USD in 1.5 hours attract attention?
This event is a testament to the liquidity pressure and high risks in short trading in the cryptocurrency market. With such large volumes, the liquidation action significantly impacted Bitcoin price volatility.
@qwatio's profits and losses from previous trades
@qwatio once made 26 million USD in profits from short selling, but lost about 24.7 million USD due to two significant losses of 16.27 million USD and 8.46 million USD respectively, highlighting the risk level in the investment strategy.
Lessons and warnings from @qwatio's case for cryptocurrency investors
Ineffective risk management, concentrating margin on a single position, and betting heavily on price volatility increase the risk of bankruptcy. Especially when the cryptocurrency market is greatly affected by unusual fluctuations and news.
Expert advice on risk management when trading Bitcoin shorts
Diversifying the portfolio, placing stop-loss orders, not using excessively high leverage, and closely monitoring on-chain developments are important measures to limit losses, according to recommendations from experienced investors in the global market.
A summary comparison table of @qwatio's trading numbers
Time Accumulated Profit (million USD) Loss in Last Closure (million USD) Short Price Basis (USD) Short Position Value (million USD) Current Margin (million USD) 26 0 — — — Last Closure Approximately 0 16.27 — — — Most Recent (14/7/2024) Approximately 0 8.46 121,176 58 1.58
Frequently Asked Questions
@qwatio is who in the cryptocurrency market? @qwatio is a famous whale trader specializing in executing large short orders, drawing significant market attention. Why did @qwatio's Bitcoin short position incur heavy losses? The reason is due to high price volatility exceeding the cost threshold, causing short orders to be liquidated quickly and incurring substantial losses. Is concentrating margin on a short position safe? The risks are very high due to lack of diversification and market volatility that cannot be accurately predicted, easily leading to the loss of all capital. How to mitigate risks when trading Bitcoin shorts? Diversifying the portfolio, placing smart stop-loss orders, not using excessively high leverage, and closely monitoring price movements are effective measures. How does liquidating a large short position affect the market? It creates enormous liquidity pressure, increases volatility, and impacts the overall Bitcoin market price in the short term.
Source: https://tintucbitcoin.com/insider-brother-qwatio-mat-trang-210-trieu-usd/
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