Crypto Whale Reduces Leverage to Avoid Liquidation

A major cryptocurrency investor recently took steps to reduce leverage and avoid liquidation pressures. According to ChainCatcher, the investor, who suffered a significant loss of approximately $230 million from an Ethereum position on Hyperliquid three days ago, has begun to lower leverage on their on-chain spot positions. The investor sold around 50,000 ETH, valued at approximately $112.8 million, to alleviate liquidation risks. Monitoring data reveals that on January 27, the investor used borrowed leverage to purchase 148,000 ETH at an average price of about $2,883 each, totaling approximately $426 million. However, a rapid decline in ETH prices to around $2,200 led to the liquidation of their position on Hyperliquid and brought their on-chain leverage close to the liquidation threshold. By reducing their position by 50,000 ETH over the past two days, the overall liquidation price has been lowered to approximately $1,600. Currently, the investor's on-chain holdings include about 33,000 BTC and 748,000 ETH, with a combined asset value of approximately $4.213 billion.