Short selling risk exposure: whale multi-currency leveraged positions shift from profit to loss

nft_widow · 2026-01-19T09:45:07+00:00

A trader who once sold off 255 BTC in large quantities is currently experiencing losses of over $7 million across multiple mainstream cryptocurrencies due to high-leverage trading. The account has gone from a profit of $5.5 million to a loss of $2.5 million. This incident serves as a warning to market participants that while high leverage can amplify gains, it can also significantly magnify risks.

nft_widow

2026-01-19 09:45:07

Abstract generation in progress

According to on-chain data monitoring, the seasoned trader who once sold off 255 BTC in large quantities has now experienced a dramatic turnaround. This whale’s leveraged positions across multiple mainstream cryptocurrencies are gradually eroding previous gains.

Rapid Expansion of Unrealized Losses

The loss scale of this whale in multi-asset contract markets is remarkable. Specifically, floating losses on positions with 10x leverage on BTC, 15x on ETH, 20x on SOL, 20x on XRP, and 3x on STBL have exceeded $7 million. This means that the previously accumulated $5.5 million in account profits have been completely wiped out, with the account ultimately turning into a $2.5 million loss.

The Cost of Leveraged Bets

This trader’s experience reflects the risk characteristics of high-multiplier leveraged trading. When market trends move contrary to expectations, losses on leveraged positions accelerate rapidly. Especially with 20x leverage on SOL and XRP, and 10x on BTC, these “short-selling plans” have turned into tragedies of expanding losses.

Insights from On-Chain Whales

This incident serves as a reminder to market participants that even seasoned traders holding large amounts of capital can easily get caught in extreme market conditions. Currently, with BTC at $92,990, ETH at $3,210, SOL at $133.79, XRP at $1.98, and STBL at $0.05, market volatility remains, and bullish trends exert significant pressure on bears. The whale’s loss data warns investors: high leverage amplifies gains but also doubles the risks.

BTC-2.14%

ETH-3.46%

SOL-5.6%

XRP-1.85%

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