Shorting whales from sudden wealth to huge losses: the story behind the turning point after selling 255 BTC

On-chain data shows that a whale account that once bottomed out and shorted has experienced a significant reduction in holdings and is now facing severe losses. According to real-time tracking by Onchain Lens, this account’s asset status has dropped from an earlier profit of $5.5 million to a paper loss of $2.5 million — the rapid turn of events is truly astonishing.

Multi-asset high leverage allocation, hidden great risks

This whale’s position allocation can be described as a “high-stakes gamble.” The account holds high-leverage positions across multiple cryptocurrencies: BTC with 10x leverage, ETH with up to 15x leverage, SOL and XRP both at extreme 20x leverage, and an additional 3x leverage exposure in STBL. Such aggressive configurations are undoubtedly “playing with fire” during market volatility.

Losses exceed $7 million, position risk at critical threshold

The most alarming data is that the account’s total unrealized losses have already surpassed $7 million. The shift from profit to loss not only shatters previous profit expectations but also indicates that this account is undergoing a severe risk test. Under such high leverage configurations, any sharp fluctuation could further exacerbate losses.

Warning: Leverage trading is a double-edged sword

This case serves as a reminder to market participants that high leverage can amplify gains in favorable market conditions but can also accelerate losses during trend reversals or increased volatility. Especially when multiple assets like BTC, ETH, SOL, and XRP are leveraged simultaneously, correlated fluctuations can further increase risk exposure.