A major cryptocurrency trading firm, Trend Research (also known as LD Capital), has executed a massive liquidation of its Ethereum holdings, resulting in a staggering loss estimated between $734 million and $747 million. The Hong Kong-based firm, led by Jack Yi, sold off the vast majority of its ETH position to cover debts incurred from a leveraged bullish bet that turned sour amid a sharp market downturn.
The firm's activity involved two distinct trading cycles. Initially, Trend Research profited approximately $315 million from a long position of 231,000 ETH, opened at an average of $2,667 and closed at $4,027. However, a subsequent and much larger position led to the massive loss. The fund opened a long position of 651,500 ETH at an average cost of $3,180. As Ethereum's price plummeted to a low of $1,742 on February 6, 2026—a level not seen since March 2025—the firm was forced to liquidate.
According to on-chain data, Trend Research withdrew a total of 792,532 ETH (worth approximately $2.59 billion at an average price of $3,267) from Binance to build its position. To repay its debt on the DeFi lending protocol Aave, the firm later deposited 772,865 ETH (worth about $1.8 billion at an average price of $2,326) back to Binance. This left the firm with only 21,301 ETH, valued at roughly $43.9 million.
Despite the enormous loss on its Ethereum trades, sources suggest Trend Research did not experience a net loss overall. Profits from other crypto assets, specifically mentioned as WLFI and FORM, reportedly offset the ETH loss, meaning the fund gave back a significant portion of previous profits but was not wiped out.
The liquidation has intensified market volatility and bearish sentiment, emblematic of the broader unwinding of leveraged positions in the crypto market. Following the sell-off, Ethereum saw a slight rebound of 5.37% to $2,012 but remains down 24% on the weekly chart. The asset now faces key resistance around the $2,100 level, with analysts watching for a potential retest of the $1,742 support or a breakout toward $2,569.
