The short-sellers of Ethereum #ETH创历史新高 were washed out, and the insider story was uncovered.
$379 million in shorts were liquidated as Ethereum broke $4700, causing severe turbulence in the leveraged market. In this liquidation, shorts on Ethereum alone accounted for $193 million, with a large number of short-sellers being forcibly liquidated as prices rapidly surged.
One particular massive liquidation was especially noteworthy: a user shorted with 20x leverage and ultimately had to add $5.22 million USDC as margin, still facing a floating loss of $14 million, exposing the risks of high-leverage operations.
This liquidation displayed typical chain reaction characteristics: for every $100 increase in Ethereum, over $20 million in short positions were wiped out, forming a positive feedback loop of "increase—liquidation—continued increase." Currently, the market liquidation risk distribution is severely uneven, with long liquidation risk around $6 billion, while shorts only account for $2.8 billion, further intensifying the pressure on short-sellers.
From a technical perspective, the price discovery phase lacks clear resistance references, making it difficult for many short investors to set effective stop-losses, ultimately leading to a passive liquidation predicament. The total of $380 million in liquidations serves as a reminder to the market: cryptocurrency volatility is severe, and risk management cannot be overlooked.
In summary, this incident reveals the following key points:
Avoid high-leverage operations against the trend
Strictly set stop-losses to control risk
Rationally respond to extreme market volatility
