Crypto Trader's $2M Winning Streak Ends in High-Stakes Shorts, Faces $34M Liquidation Risk

A prominent on-chain crypto trader, identified by the address 0xFC78, has seen a dramatic reversal of fortune, losing over $1.78 million in profits from a nine-trade winning streak and now risking liquidation on massive leveraged short positions. According to data from Lookonchain and Hyperdash, the trader's recent missteps have not only erased all gains but also put him $117,000 below his principal investment.

In a move characterized as "revenge trading," the trader has opened two highly aggressive short positions: a 30x leveraged short on 200 Bitcoin (BTC), valued at approximately $18.75 million, and a 20x leveraged short on 5,000 Ethereum (ETH), worth about $15.26 million. Combined, these positions represent over $34 million at risk, with high leverage significantly amplifying the potential for forced liquidation.

The trader is already facing unrealized losses, with the BTC short showing a loss of -$12,600 and the ETH short at -$12,493. While these amounts are small relative to the total position size, the high leverage means even a 1-2% price move against the positions could trigger liquidation. The trader's current equity is estimated at around $1.81 million.

Liquidation prices are alarmingly close to current market levels, with the BTC position facing liquidation at $94,721.61 and the ETH position at $3,229.41. Given the volatile intraday movements typical of Bitcoin and Ethereum, the market is watching closely, as a small upward price swing could trigger a domino effect of liquidations, resulting in millions lost within minutes.

This saga began just days prior when the same trader, 0xFC78, was celebrated for a perfect 9-trade winning streak over 11 days, realizing over $2.12 million in profits from trades on BTC, ETH, and Zcash (ZEC). The streak included a massive $706,610.86 profit from a ZEC long position. However, the trader subsequently opened an even larger, riskier 40x leveraged short on 500 BTC, worth $43.88 million, which is also under pressure with an unrealized loss of -$682,823.44.

The crypto community is monitoring the wallet closely, as large, highly leveraged whale positions can influence derivatives markets and cause ripple effects across exchanges. The rapid rise and potential fall of trader 0xFC78 serves as a stark warning about the dangers of overconfidence, emotional revenge trading, and the extreme risks associated with high leverage in the volatile cryptocurrency market.