A major investor suffered a significant loss using a cyclic borrowing strategy.

As early as August 2025, he bought 1,560 WBTC at an average price of $116,762 per coin (spending $182 million), while simultaneously purchasing 18,517 ETH at $4,415 per coin (costing $81.75 million), with a total investment of nearly $2.63 billion. It seemed like he was betting on a big market rally, but the market did not rise as expected.

Starting in November, as prices continued to decline, he began to cut losses in batches. He fully sold out of ETH when the price had dropped to $3,049, incurring a loss of $252.9 million. He also sold 560 WBTC at $92,015 each, resulting in a loss of $138.6 million. Recently, when Bitcoin surged to $97,000, he continued to reduce his holdings—selling 300 WBTC at $97,053 each, and using the proceeds of $29.11 million USDT to repay loans.

Up to now, he still holds 1,000 WBTC (worth $96.81 million), but his accumulated loss has reached $39.15 million. The cost of buying high and selling low is wiping out all previous profits.