In a stunning turn of events, a high-profile cryptocurrency trader known on X as qwatio has suffered a catastrophic liquidation of short positions totaling a staggering $334 million, on-chain analytics firm Lookonchain revealed.
The liquidation, which occurred within a mere three-hour window, has sent shockwaves through the digital asset markets and ignited a renewed debate about the risks associated with leveraged trading.
According to publicly available data, qwatio’s ill-fated positions included 1,743 BTC valued at $211 million, 33,743 Ether worth $102.3 million, and 15 million units of the lesser-known cryptocurrency FARTCOIN, valued at $20.6 million.
Furthermore, the trader’s wallet, identified as 0x916E, is now reportedly down nearly 25.84 million in total losses, reflecting the magnitude of the financial devastation.
Trader Loses $334 Million in Three Hours.
Notably, the initial liquidation event was followed by further losses less than 48 hours later, with an additional 458 BTC ($55 million), 12,147 ETH (55million),12,147ETH($36.55 million), and 5.4 million FARTCOIN ($7.33 million) being liquidated. This second wave of liquidations brought the total losses attributed to wallet 0x916E to approximately $22 million.
The rapid and substantial losses incurred by Qwatio have prompted widespread discussion and commentary within the cryptocurrency community. One X user, reacting to the news, described the event as a “brutal liquidation” and cautioned against the perils of shorting in the current market environment.
Additionally, the user emphasized the importance of risk management, stating:
“Shorting in this market is playing with fire. Poor guy just got rekt. I’m sticking to my longs and $Hilo for sure. This is why risk management matters.”
