1011 Flash Crash Trader Escalates ETH Long Bets to $736M Following Strategic Repositioning

According to on-chain data shared by analyst Ai Yi on January 17th, a prominent market participant who had shorted during the 1011 flash crash has dramatically reversed course by significantly increasing Ethereum long positions. The trader, identifiable through on-chain tracking, added 20,000 ETH approximately nine hours before the report, expanding total holdings to 223,340 ETH—valued at approximately $736 million at the time of the analysis.

On-Chain Evidence of Sentiment Shift After 1011

The position increase marks a striking reversal in strategy following the October 1011 market downturn that caught many traders off-guard. Rather than maintaining bearish bets, this whale holder has doubled down on Ethereum, signaling renewed confidence in ETH’s medium-to-long-term prospects. The unrealized gains on the recent 20,000 ETH purchase stood at $29.46 million, while the overall portfolio floating profit reached $40.93 million—suggesting the trader entered these positions at strategic price levels below current valuations.

Strategic Position Accumulation Post-1011

The timing of this accumulation phase carries significant implications for market sentiment. While many retail participants remained cautious following the 1011 flash crash, this sophisticated on-chain actor’s aggressive position-building indicates institutional-level confidence in Ethereum’s recovery trajectory. With ETH currently trading around $3,000 per token, the trader’s total exposure reflects substantial conviction in the network’s long-term thesis, demonstrating how major players often capitalize on crisis-driven selling pressure to establish large positions when sentiment remains pessimistic.