One anonymous 'smart' whale — probably a person with an expensive monitor, charts, Excel, and, of course, a confident genius look — lost $1,050,000 because... they didn't believe in SOL.
Or maybe he believed too much in his EGO.
Let's start simple:
Yui Jing, a respected on-chain analyst from BlockBeats. According to his data, one crypto whale — not the one singing in the ocean, but the one shorting while sitting in pajamas — opened a short position of 115,000 SOL. That's about 20 million dollars at the current price of $175 per coin.
The whale probably thought:
"SOL is overheated. Bubble. They will dump it now — I will get rich."
Well, at some point, he really did 'dump', just the other way around.
What went wrong?
The price went not down, but up.
Moreover, quickly. Very quickly.
And then the show began. The whale realized:
"If I don't close now, liquidation will eat everything."
He closed the short at $175, realizing a loss of $1,050,000. This means a minus of 86% from his collateral. This is not a drawdown — it's financial harakiri live.
Short squeeze — our favorite spectacle.
Someone shorts, then the price rises a little, and the system automatically starts liquidating their position. This triggers a domino effect. The price goes even higher. More liquidations. Even higher. And so on.
The crypto market is not the stock market. It's UFC.
And if you step into the ring with 115,000 SOL against the trend, be ready for a technical knockout.
The moral of the story?
1. Don't short an asset where every update is like launching Elon Musk's rocket.
2. Don't play against the crowd when the crowd has derivatives, memes, and Twitter in hand.
3. Even whales make mistakes. It's just that it costs them more.
Now, a question for you:
If a whale can burn $1 million in a morning, what's stopping you from hitting 'close position' for a $200 loss?
Do you still think you can 'wait it out'?
