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This Trader Was Liquidated 8 Times in a Week, Losing Millions
In the world of cryptocurrency trading, risks are always lurking around the corner. What may seem like a lucrative opportunity can quickly turn into a devastating loss. A recent incident involving a trader known only by their handle “qwatio” on X highlights this risk.
According to reports from Lookonchain, an on-chain analytics firm, qwatio has been liquidated eight times in just one week, resulting in a staggering loss of millions of dollars. This trader’s story is a cautionary tale about the dangers of trading with high leverage and taking unnecessary risks.
qwatio’s journey began with impressive gains, raking in over $6 million in profits from a single day’s trade. However, this was not meant to be a sustainable success story. The trader continued to take on high-risk positions, using 50x leverage to bet big on the cryptocurrency market. This aggressive approach ultimately led to catastrophic losses.
The investigation by Lookonchain revealed that qwatio held long positions in both Bitcoin (BTC) and Ethereum (ETH), which backfired spectacularly. In a matter of days, the trader lost over $10 million, with 8,000 ETH ($20.11M) and 280 BTC ($30.4M) being liquidated.
This incident serves as a stark reminder that high-risk trading can have devastating consequences. The liquidity provider, HLP, had to absorb these massive losses, leading to significant financial burdens. As a result, Hyperliquid has since capped the maximum leverage possible for ETH at 25x to prevent such losses in the future.
qwatio’s story is all too familiar, echoing that of another trader known as James Wynn. His high-stakes trading adventures have been well-documented, with his single BTC position worth $1.25 billion being liquidated shortly after Trump signed an executive order.
This incident serves as a cautionary tale for traders, emphasizing the importance of responsible risk management and diversified portfolios.
Source: cryptopotato.com
