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A prominent Ethereum ($ETH) whale has attracted attention with a series of aggressive short positions, amassing a staggering $77.68 million in short positions against $ETH.
The trader’s actions, documented on-chain and spread on social media, are raising eyebrows as potential losses climb into the millions.
Yesterday, the whale’s initial short position of 10,612.59 Wrapped $ETH (WETH) had already made a loss, facing a volatile loss of $908,000. The undeterred trader made matters worse overnight, opening another short position of 5,000 $ETH in a row. This initial upload was made via Aave, a decentralized lending platform, and the whale traded for an average of $3,459.38. A subsequent buyback at $3,436 yielded a small profit of $117,000, which is a drop in the bucket compared to the total risk.
Just a few hours later, the whale continued its aggressive strategy by borrowing another 5,000 $ETH at an average price of $3,501.79, bringing its total short position to 15,612 WETH. At this point, the trader’s health factor, a metric used by Aave to assess liquidation risk, stood at 1.45, predicting liquidation at $3,861.77 $ETH.
The whale’s risk didn’t stop there. Following social media updates documenting the transactions, the identified wallet address (0x6c2…a4777) further increased its short position to 20,612.13 $ETH. Adding fuel to the fire, another address (0x2c8…22d86) opened a 1,001 $ETH short position, apparently in association with the trader.
This combined short position is now worth 21,613.13 $ETH, equivalent to $77.68 million at the time of writing. With an average ask price of $3,458 and the current market price trading above that level, the trader is currently facing a significant floating loss of $2.84 million. The health factor has also fallen dangerously low to 1.27, indicating a high risk of liquidation should $ETH experience a significant price increase.
*This is not investment advice.