Short seller’s mistake: A whale with 255 BTC closes long positions, losing $2.86 million, with profits shrinking by 90%

A whale who once gained fame for shorting 255 BTC has recently paid a tuition fee. According to the latest news, this experienced trader closed their long positions on BTC, ETH, and SOL, incurring a single loss of $2.86 million. Even more heartbreaking, their overall account profit plummeted from $25.5 million to $2.97 million, a decrease of over 88%.

From Bearish to Bullish, and then to Giving Up

Whale’s Strategy Shift

This whale’s trading trajectory is quite story-worthy. Previously known for shorting 255 BTC, indicating a bearish outlook on the market. But according to the latest on-chain monitoring data, this whale established long positions on BTC, ETH, and SOL, clearly showing a bullish judgment on market direction.

However, reality gave it a slap. During the recent market correction, these long positions suffered losses and were ultimately liquidated to cut losses.

Data Comparison: How Profits Vanished

This comparison is quite shocking. From $25.5 million to $2.97 million, most of the profit disappeared in just one position adjustment.

Market Context: Why Did It Lose Money

Recent Market Pressure

According to the latest market data, BTC has fallen 6.85% over the past 7 days, with the current price at $88,935.92. This decline may seem modest, but in leveraged trading, it can be deadly.

Related news shows that recent market volatility has intensified, with multiple whales’ long positions facing liquidation or significant losses. This is not an isolated case but a reflection of the overall market trend.

Why Choose to Liquidate

Based on personal observation, this whale’s decision to close positions may be due to the following considerations:

• Stop-loss needs: In a continuous downtrend, timely stop-loss is necessary to protect capital
• Risk management: Even experienced traders need to admit mistakes when in the wrong direction
• Funding pressure: Massive losses may trigger risk alerts, requiring leverage adjustments

An Interesting Detail

It’s worth noting that this whale did not completely clear all positions. It continues to hold a 5x short position on DASH, with an unrealized profit of $650,000. This indicates that it still bearish on certain assets and has not completely changed its strategy due to long position losses.

This “partial entry and exit” approach reflects the risk management mindset of a mature trader: cutting losses promptly when wrong, while maintaining judgment on other positions.

Summary

The key word in this story is “adjustment.” Even a whale with rich experience and ample funds can make mistakes in the face of the market. From a profit shrinkage of $25.5 million to $2.97 million, this whale has demonstrated with real money what “the market is always right” means.

The lesson for market participants is: no one can predict the market perfectly. Timely stop-loss and flexible strategy adjustments are more important than stubbornly holding onto a single judgment. Although this whale lost $2.86 million, it retained $2.97 million in profit and the ability to continue participating in the market. Compared to traders who were completely liquidated, it is already a model of “timely stop-loss.”