Crypto’s total market capitalization rose today amid the expected consumer price index (CPI) data and high optimism of next week’s Fed rate cuts.
Nevertheless, the market rebound has proven miserable for traders betting on it. In fact, one high lipid trader identified by wallet address 0xA523 has surpassed the losses of risky traders like James Winn, becoming the top loser.
High-fat loser who lost $43 million – what was wrong?
Data from Beincrypto Markets showed that the cryptocurrency market has risen by 1.34% over the past 24 hours, with all the top 10 coins being green.
Crypto Market Performance. Source: Beincrypto Markets
Bitcoin (BTC) quickly managed to get past $116,000 in early trading hours in Asia. Meanwhile, Ethereum (ETH) also surpassed $4,500, highlighting the market-wide rally.
In this, blockchain analytics company Lookonchain reported that Whale 0XA523 has leveraged significantly in BTC and is betting on a lower price. Instead, the position was under pressure when the market moved upwards.
To reduce the risk of liquidation, Lookonchain said traders were forced to sell 152 ETH (value about $679,000) to increase margins and lose some of their short Bitcoin positions.
“It’s always dangerous to shorten Bitcoin in a bull market,” Wise Advice wrote.
This is not the first major setback of the whale 0xA523. His track record of defeat is impressive. Earlier this week, the company highlighted that traders sold 886,287 hype tokens for $39.66 million at one point. If he had held on them, his position would now reflect an unrealized profit of around $9 million.
The whale then lost more than $35 million in the long position at ETH. Switching strategies, he shortened his ETH, but suffered an additional loss of $614,000.
According to the latest data from HyperDash, his current BTC short is also red, with unrealized losses totaling around $2.28 million.
“In just a month, he’s now lost $43.4 million, surpassing @Aguilatrades, @Qwatio and @jameswynnreal, making him the biggest loser with high lipids,” the post read.
0xA523 BTC short position. Source: HyperDash
Besides this whale, another trader (0x5D2F) was also caught off guard in the market rebound. He is sitting at a loss of more than $7.42 million in short positions at BTC and ETH. Lookonchain reported that he would inject 8 million USDC into his account to increase the margin to prevent liquidation.
0x5d2f open position. Source: HyperDash
Both traders show significant risks associated with high-leverage trading where sudden price fluctuations can escalate into forced liquidation. Similar situations have been observed by James Wynn, Aguiratrado, Qwatio, and even influencer Andrew Tate, highlighting that leveraged trading results in substantial exposure to losses regardless of reputation or market position.
Post moves, James Wynn: This high-lipid whale claimed that the loss crown first appeared in beincrypto.