On January 14, data from on-chain analytics platform Hyperinsight revealed that a trader closed a short position on the gold-backed token PAXG after holding it for 20 days, realizing a $46,000 loss. This move highlights the dangers of leveraged trading amid volatile crypto markets.
Massive Shorts on BTC and ETH Deepen Losses
Despite exiting the PAXG bet, the trader continues to maintain aggressive bearish positions on major assets:
- Shorted 91.61 BTC at 40x leverage with an average entry of $89,703.3, now facing $475,000 in unrealized losses;
- Shorted 1,957.82 ETH at 25x leverage at $3,094.18, with current unrealized losses near $459,000.
The Peril of High-Leverage Bets
As market momentum shifts upward, such high-risk strategies are increasingly vulnerable. With Bitcoin challenging new highs and Ethereum showing signs of recovery, sustained bearish leverage could trigger margin calls or liquidations. This case serves as a stark warning: betting heavily against the trend using extreme leverage can lead to devastating outcomes.