From PANews and blockchain analyst Yu Jin, on August 6, an "insider whale" named @qwatio made a trading maneuver to avoid liquidation.
Here are the details of the incident:
Trigger: This whale has two large positions: a short position on Ethereum (ETH) and a short position on Bitcoin (BTC).
Pause Action: At 07:00 UTC+8, @qwatio decided to close their short position on ETH.
Reason: This closure of the ETH position was made to secure their short position on BTC to prevent liquidation.
Liquidation Risk: Currently, the short position on BTC held by @qwatio is worth $115 million. The liquidation price for this position is very close, at $114,491.
Market Condition: At that time, the price of Bitcoin was only about $400 away from the liquidation price, indicating a very risky and volatile situation for this pause.
In simple terms, this pause chooses to sacrifice one trading position (ETH) to protect another trading position that is worth much more (BTC) from a very close liquidation risk. This is a strategic move made to reduce the potential for very large losses. $BTC $ETH