Yili Hu's Ethereum Position: A Key Pillar Amid Market Fluctuations

Liquid Capital founder Yili Hu’s Ethereum position has become the most watched focus in the current crypto market. His account not only represents personal asset size but also serves as a key pillar in the microstructure of the entire market—enough to trigger a chain reaction during liquidity surges. Currently, ETH trading price is around $1,980, well below his average cost basis of over $3,000, with unrealized losses reaching approximately $650 million.

Fragile Dilemma of the Million-Dollar Liquidation Range

Based on his primary collateral position on the Aave protocol, the current liquidation price mainly ranges from $1,558 to $1,650. This price range is the target of short sellers—once ETH hits this zone, the automatic liquidation mechanism will be activated. More concerning is that market liquidity itself is extremely fragile; any sudden sell-off of tens of millions of dollars could cause disorderly price drops, triggering a domino effect of liquidations.

Account Health Threshold and the Trigger for Chain Collapse

When ETH price falls below $1,850, Yili Hu’s account health index will approach the danger threshold of 1.1—this is the last warning line before liquidation. At this critical moment, if the market suddenly experiences liquidity exhaustion or black swan events, his account could shift from “dangerously close” to forced liquidation. The deeper risk is that this liquidation will not be an isolated event but could trigger a chain of liquidations of other leveraged positions, becoming a catalyst for systemic market risk.

Current Dilemma and the Market’s Delicate Balance

The account’s current losses are nearly $650 million, with an average cost basis still far above the current price. This massive unrealized loss combined with high leverage makes Yili Hu’s position a critical pillar of market stability—once an unexpected event occurs, it could destabilize the entire ecosystem’s fragile balance. Short sellers are carefully waiting for this moment, and whether the market can avoid this potential crisis depends on Ethereum maintaining its current support level.