A prominent Ethereum whale has incurred over $10.7 million in unrealized losses from a substantial ETH short position as volatility roils cryptocurrency derivatives markets.
The investor moved to mitigate immediate liquidation risks by adding 3.58 million USDC to the position, increasing the collateral buffer against potential forced closure. This defensive maneuver followed significant market movements that pushed the trade deep into unprofitable territory.
The incident underscores the extreme risks and price unpredictability within Ethereum’s derivatives ecosystem. Such high-stakes positions remain vulnerable to rapid liquidation cascades when collateral thresholds are breached during turbulent market conditions.