Short Whale Suffers as Crypto Rally Turns Profits Into Losses

Source: CryptoNewsNet Original Title: Short Whale Suffers as Crypto Rally Turns Profits Into Losses Original Link: A huge crypto whale is under pressure with the prices on the increase. Lookonchain provided new information regarding the positions of the trader. The whale had initially sold 255 BTC to open aggressive shorts. The strategy worked at first. Profits appeared quickly. Now this is no longer the case. The trader opened the position at the end of December. He sold 255 BTC that were worth more than 21 million dollars. He aggressively extended the bet and included ETH, SOL and SUI shorts. The cumulative exposure had passed $260 million. The whale was hoping to gain a market pullback.

Rally Pushes Shorts To the Red

Instead, Bitcoin had a rise. Prices have risen up to above 93,000 as compared to mid-80,000. Ethereum and Solana followed suit. The rally pressurized shorts. Unrealized losses grew fast. The present losses are more than 6 million dollars. The trader had a profit amounting to a 7.7 million unrealized profit at one time. That advantage disappeared. The PnL flipped negative. The current figures reflect a negative loss of 1.7 million. This pendulum occurred in days. Volatility made an impact. The whale makes heavy use of leverage. Margin usage now sits near 97%. There is not much room to make mistakes at that level. Any little rise in price might lead to forced liquidations.

Reaction of the Community to the Shift

Crypto traders quickly reacted to the news. Others applauded the very bold approach. Still, other people cautioned against shorting strong tendencies. It was pointed out by many that bull markets can destroy quick gains. The case raised new controversy on the issue of risk management. This scenario is indicative of a wider feeling. Momentum is now controlled by bulls. There is mounting pressure on shorts. Increasing prices penalize bearish positions. Patience is still being rewarded in the market than leverage. The whale that sold 255 BTC to short is now watching accumulating losses. Cryptocurrencies wiped out gains in a powerful surge. This was caused by heavy leverage. The case demonstrates the risk of shorting when momentum changes. In crypto, it is a directional game. Timing matters even more.