The large Bitcoin short seller “inside boss” qwatio has just reduced half of his BTC short position amid strong market volatility.
In just 20 minutes, qwatio cut his Bitcoin short position to 62.5 million USD, suffering a loss of over 2 million USD after losing about 26 million USD in profit during the position rolling process and multiple liquidations.
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qwatio cut his Bitcoin short position by 50% after suffering multiple losses.
The current loss is about 2 million USD, a significant decrease from previous profits.
The remaining short position is valued at 62.5 million USD with a liquidation price of 115,368 USD.
Who is qwatio and what is his current short position on BTC?
qwatio, also known as the “inside boss,” is one of the largest short sellers of Bitcoin in the market. He has just decided to reduce his short BTC position by half, down to about 62.5 million USD.
This position cut occurred after qwatio suffered continuous losses, causing his initial investment of nearly 3 million USD to drop to 1 million USD.
This action reflects a more cautious strategy in the context of a highly volatile cryptocurrency market, aiming to reduce the risk of further position liquidation.
Why did qwatio suffer significant losses during trading?
The main reason for qwatio's losses stems from continuously rolling positions, combined with stop-losses or liquidations due to strong price fluctuations.
Periods of market volatility often cause a “stop-out” effect on short positions, leading investors like qwatio to suffer significant capital losses.
This also reflects the pressure in risk management and trading strategies when facing an unstable price environment on the Hyperliquid platform.
The veteran trader commented: “Position rolling in a highly volatile market needs to be tightly controlled to avoid sudden liquidation risks, especially with large-scale short positions.”
Cryptocurrency trading expert, 2024
How do liquidation prices affect qwatio?
qwatio's current short position of 62.5 million USD has a liquidation price of 115,368 USD, which poses a liquidation risk if Bitcoin's price exceeds the threshold.
Thus, the strategy for managing positions and closely monitoring market prices will determine the ability to maintain or lose positions in the future.
Price fluctuations of BTC exceeding liquidation levels can lead to realizing losses or forcing further position cuts to preserve capital.
Risk management strategies for large short investors?
Effective risk management requires the use of tools such as automatic stop-losses, diversifying positions, and controlling leverage to minimize losses during strong fluctuations.
Investors need to have a clear plan for position rolling, ensuring that liquidation prices are closely monitored to help limit sudden liquidations.
Learning from the experiences of whales and using platforms with advanced risk management technology like Hyperliquid will help enhance trading efficiency.
Frequently Asked Questions
Q1: What is a short position and why should investors manage it carefully?
A short position is betting that the asset price will decrease. Careful management helps avoid significant losses due to sudden liquidation caused by price increases.
Q2: Why did qwatio have to cut his Bitcoin short position?
Due to significant losses and high liquidation risks in a volatile market, qwatio reduced his position to preserve capital.
Q3: How do liquidation prices affect short trading?
The liquidation price is the threshold that causes positions to be automatically closed, and investors need to monitor it to avoid losing all capital.
Q4: Is position rolling an effective strategy in the cryptocurrency market?
It can be effective but also highly risky if not managed well, easily leading to liquidation during strong volatility.
Q5: Should retail investors monitor the activities of whales?
Yes, as the movements of whales often have a significant impact on market trends and the general sentiment of investors.
Source: https://tintucbitcoin.com/ca-voi-bitcoin-cat-giam-lo-nang/
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