High-Leverage Horror: #Ethereum Whale Burns $2.96M in 48 Hours...
In a dramatic case of emotional and over-leveraged trading, an Ethereum whale (wallet: 0xcddf) has lost over 90% of his portfolio in just two days—turning \$2.96 million into a mere \$250,000. The story, shared by on-chain analyst Yujin, has quickly gained attention across the crypto community.
It all started on May 18, when the trader opened a massive short position against Ethereum. He shorted 41,851 ETH at $2,514 using 25x leverage. With a liquidation price of $2,525, he had virtually no margin for error. The market didn’t wait—Ethereum rallied past his stop point, liquidating the position and wiping out $2.46 million in an instant. Ironically, ETH corrected not long after his position was forcefully closed.
Still in shock, the trader shifted gears and went long on Bitcoin. He placed a massive $17.6 million bet at $106,580 with 40x leverage. Once again, the market turned against him. Just 45 minutes later, that position was also liquidated, slashing his holdings to $250,000.
In a final attempt to recover, he shorted Eth again at $2,444 with 25x leverage. But history repeated itself. Online traders have nicknamed this the "punching bag" strategy—constantly switching positions but always landing on the losing side.
This story is more than just a trading failure. It’s a cautionary tale about the dangers of high-leverage trading and emotional decision-making. In crypto, the higher the leverage, the steeper the fall.
Key takeaway:
Stick to your trading strategy, manage your risk carefully, and never let losses drive you into impulsive decisions.
