After a six-month absence from the market, an account notorious for massive losses has re-emerged in the crypto space. Derivatives trader AguilaTrades (@AguilaTrades) recently opened a $16.58 million Bitcoin long position.
The trader deposited 499,000 USDC in initial margin to on-chain derivatives exchange Hyperliquid, deploying the fresh capital as collateral with 40x leverage to acquire contracts for 200 Bitcoin.
Track Record of 33 Liquidations
Using 40 times borrowed capital relative to initial margin is nothing new for the trader. Historical records reveal a pattern of extreme trades that have repeatedly wiped out substantial sums of money.
On-chain data tracks an extensive history of losses tied to the same wallet. AguilaTrades has reportedly suffered 33 forced liquidations when market moves went against open positions.
Cumulative losses from those 33 liquidation events total $37.64 million, with the capital wiped out by crypto price volatility before the trader stepped away from trading for over six months.
Razor-Thin Liquidation Buffer
The latest maneuver on Hyperliquid carries similar risks. Applying 40x leverage means even minor price fluctuations in Bitcoin will have a heavily amplified impact on the 499,000 USDC deposit.
The critical liquidation threshold for the 200 Bitcoin position sits at $81,466.75 per coin. If market prices touch that level, Hyperliquid’s protocol will automatically take over the contracts, wiping out the entire remaining margin.
The safety margin above liquidation is slim, with Bitcoin continuing to trade volatilely within a tight range between $82,000 and $83,000.
A Recurring High-Risk Pattern
With the market price hovering less than $1,000 away from the liquidation price, the long position faces constant threat. A routine daily correction could easily wipe out the freshly deposited funds.
AguilaTrades’ return with an identical strategy highlights the quintessential behavior of high-leverage derivatives traders. Despite losing $37.64 million across dozens of liquidations, the trader appears undeterred from placing another massive bet right on the brink of liquidation.
Via @lookonchain on X.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
