Amid a crypto market rally that wiped out over $3 billion in short positions today, a bold trader took the opposite direction. On-chain data shows that an entity under the alias Gambler 0x004e opened a new short position with a total value of $81.6 million. This move was made just as the market recorded its largest liquidation of short positions since 2021.
This tens-of-millions-of-dollars bet is split between the two largest crypto assets. Gambler 0x004e placed a short position on 20,000 Ethereum worth approximately $45.69 million. The remainder was wagered on 500 Bitcoin with a nominal value of $35.93 million. Taking a short position while prices are rising sharply clearly carries risks, especially considering how close the current market price is to the liquidation point of their portfolio.
Liquidation is Just a Step Away
The critical point of this maneuver lies in the liquidation price limits. For the Ethereum position, the liquidation limit is at $2,327.03. However, the most urgent threat comes from the Bitcoin position. The liquidation price for the 500 Bitcoin is set at $72,755.85.
Citing a report by the @lookonchain account on X - which has now garnered 273 likes - the Bitcoin price is currently breathing down the neck of that fatal limit. With Bitcoin actively trading in the range of $71,556 to $73,000 as this news spreads, the trader’s short position is in grave danger. Any minor price spike that touches the liquidation price will instantly burn their $35.93 million in seconds and force the exchange system to close the position.
A Lineup of Hundreds of Millions of Dollars in Liquidation Victims
Gambler 0x004e’s maneuver comes on a bad day for short sellers. The total value of short liquidations exceeding $3 billion has claimed other major players as victims. The top of the list is filled with nine-figure loss numbers.
The wallet with the code 0x8c96 was recorded as one of the biggest victims today, losing 1,829 Bitcoin, equivalent to $120 million, as their position was wiped out. Next in line, the entity named pension-usdt.eth had to watch 49,808 Ethereum, worth $111.34 million, simply evaporate. Following behind them, wallet 0x8eff suffered a loss of $92.56 million from their short position of 1,343 Bitcoin, which was also swept away by the market rally.
Other Whales Choose to Take Profits
In stark contrast to the counter-trend maneuver of Gambler 0x004e, several other whales realized their profits amidst the rally. The wallet coded 0x4cee took steps to exit by selling 5,250 Ethereum worth $11.76 million, locking in a net profit of $1.76 million from the price movement.
A similar strategy was followed by another large Bitcoin holder. The bc1qqt wallet offloaded part of its portfolio by selling 550 Bitcoin worth $39.43 million. From this selling action amidst a green market, the whale secured a net profit of up to $4.5 million in their pocket.
For Gambler 0x004e, holding a short position amid the pressure of buyers flooding the market is a test of its own. With the Bitcoin price already touching its liquidation limit range, time will soon tell if the bet pays off, or if they will only add a new name to today’s long list of liquidation victims. Reported by @lookonchain on X.
Also read: How to Read Candlesticks for Beginners
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.
