On March 13, market tracking data revealed a high-net-worth trader injecting over $3.26 million into a leading derivatives protocol, swiftly initiating a massive bearish position in crude oil futures.
Betting Against Oil: A $6.6M Short with 20x Leverage
The trader’s first move was aggressive—opening a short position on 70,000 WTI crude (CL) contracts with 20x leverage. The total notional value reached $6.6 million, with an average entry price of $94.13 per barrel. This high-leverage play reflects a strong conviction that recent oil price gains may be reversing.
Liquidation at $137: A High-Stakes Gamble
The position is set to liquidate if prices rise to $137.29, a level currently well above market value. Still, with ongoing geopolitical tensions and potential OPEC+ supply cuts, this trade carries significant risk.
- Entry Time: Early March 13
- Initial Margin: $3.26 million
- Leverage: 20x
- Contracts: 70,000 CL
- Average Price: $94.13 per barrel
- Liquidation Price: $137.29
Analysts suggest this move signals a bold prediction of a near-term peak in oil prices. A drop in demand outlook or weaker macro data could fuel a pullback, rewarding the whale handsomely. However, any supply disruption could quickly turn the tide against the position.