How Heavy Can a Whale's Leverage Get? Major Trader Forced to Exit $16.7 Million in Positions

2026-01-12 10:17:55

Abstract generation in progress

A substantial leveraged position held across multiple accounts has recently come under pressure. According to on-chain monitoring data, a prominent trader’s account encountered forced liquidation of significant holdings, including approximately 431,000 HYPE tokens (valued around $10.4 million at current $24.14 pricing) and 1,960 Ethereum (approximately $6.1 million based on current ETH rate of $3.12K).

The Remaining Exposure: Still Remarkably Large

Despite the liquidation event, the trader’s total open interest remains considerable. The primary account continues to maintain long positions spanning 1.726 million HYPE tokens ($41.7 million) and 7,841 ETH ($24.5 million). What’s particularly striking is the secondary account, which carries an additional $230 million notional value in XRP and Ethereum long positions.

Understanding the Scale of These Bets

In total, this market participant commands close to $300 million in active long exposure across their holdings. This magnitude of leverage illustrates the substantial risks inherent in concentrated directional bets. The partial liquidation signals that even with significant capital backing, extreme leverage positions face execution challenges during volatile market conditions—a reminder of how quickly whale-sized trades can become whale-sized losses.

HYPE4,63%

ETH3,25%

XRP2,12%

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