The high-risk trading episode was again back in the limelight as on-chain analytics platform Lookonchain reported that AguilaTrades has fully closed out a short position in Ethereum, landing a hard-realized loss of more than $8 million.
This is another chapter in the roller-coaster journey of this trader who first saw losses mounting above $35 million.
Afterwards, it turned around dramatically and made profits in excess of $3 million, and then bounced back into another series of losses above $27 million.
Aguila’s trades, all happening on the highly leveraged DEX called Hyperliquid, serve to highlight the very high volatility and immense psychological pressure that come with high-risk trading strategies within the crypto space.
Key Positions Unwound During a Market Shift, Including Giant Short Positions on BTC and ETH
Developments from Lookonchain marked the liquidation, over the past hour, short positions in 6,832 ETH worth $25.15 million and 1,134 BTC valued at approximately $134 million, leaving Aguila’s trades with an immediate realized loss of $1.1 million.
However, the trader remains largely exposed to the market with a simulated 50,000 ETH short position worth $186 million.
With that alone, incurring an unrealized loss of $8 million, it is safe to surmise that Aguila’s strategy is very much bearish despite the recent uptrend in Ethereum.
These position changes indicate attempts to catch a market reversal but also expose the weaknesses of times trades.
Also Read: Crypto Trader Losses $317K After $1M $VINE Trade Goes Wrong, $VINE Price Tanks by 35%
AguilaTrades: A Case that Illustrates the High Roller Atmosphere of Crypto Trading
In more extreme corners of crypto trading, notably on platforms like Hyperliquid offering extreme leverage, the name AguilaTrades has become somewhat symbolic.
His savage swings from deep losses to a few pockets of profits, and then back to the losses have turned into a cautionary tale and an entertainment spectacle for the trade fraternity.
Market observers have correctly called his journey “legendary” and not necessarily for consistent success, but with respect to the magnitude of risks and sheer resilience displayed.
The recent development shows how leveraged trading can lend moments of victory but is commonly accompanied by a crushing sense of financial loss once trades do not go according to expectation.
Also Read: Crypto Trader Ansem Faces Over $325K in Losses After Offloading 2.97M $WIF and 3.6M FARTCOIN Tokens
Ethereum’s Price Pump Disrupts Short Strategy for Traders Like Aguila
The past week has seen the price movement of Ethereum further complicating the shorting strategy pursued by traders like Aguila.
Presently, ETH is trading at $3,806.56, registering an intraday gain of about 3.24% and an impressive 25.04% appreciation over the week.
With a circulating supply of 120 million ETH, and a market cap nearing $459 billion.
The rally in the price seems to be precipitated by a resurgence of institutional interest together with the general bullish sentiments prevailing in the crypto domain.
Short sellers during this rally would be making heavy losses, as is evident from the case of Aguila, where even temporary gains were canceled by abrupt reversals in price.
Also Read: Crypto Trader Faces $238K In Losses Via $22M WBTC Swing Trade Over 50 Days
Broader High-Risk Trading: James Wynn’s $100M Loss
Wynn’s story parallels that of Aguila, another high-risk trader who recently made headlines for a loss of more than $99 million when his immensely leveraged position in Bitcoin was liquidated.
Following his loss, Wynn blasted crypto markets and called them “corrupt” and has since advised others never to use leverage, advocating the simple buy-and-hold strategy of keeping BTC in cold storage.
Wynn had also made a questionable purchase of some 2.446 trillion ZEUS tokens worth about $104,000-the dark pool manipulation claims are linked to this purchase.
These stories will remind us how volatile the crypto market is, where even developed traders lose huge, and shifting sentiment turns rapidly from rosy to disillusionment.
Also Read: Crypto Trader Suffe rs $10.39M Loss Via 50x BTC Long Position With Extra Losses on HYPE and HFUN Trades