According to Lookonchain, during the significant market downturn on February 6, a whale with the address 0xEc0B faced massive liquidations across multiple cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), ENA, WIF, NEAR, CRV, and Dogecoin (DOGE).
Why Was the Whale Liquidated Repeatedly?
The sharp price decline and heightened volatility triggered margin calls on leveraged long positions. The whale experienced 21 liquidations in one day, resulting in cumulative losses exceeding $19.7 million, highlighting the risks associated with high-leverage trading.
Market Impact Analysis
This incident underscores the current instability in the crypto market and the potential chain reactions caused by leveraged positions. Investors should remain cautious of market swings and manage their exposure and leverage prudently.