Aave Whale Hit with $11.4M Liquidation as Bitcoin Drops to $80K

TLDR

• Bitcoin’s price drop to $80K triggered over $30 million in liquidations across the crypto market.
• Aave whale 0x94de…940a faced a $11.41 million liquidation after leveraging wrapped Bitcoin and Ether.
• Aave whale 0x3436…2094 saw a $1.92 million liquidation, bringing total losses to nearly $5 million.
• Jeffrey Huang’s trading account was fully liquidated, leading to a $20.23 million loss.
• The market downturn also impacted other major traders, including the “Anti-CZ Whale.”

The sudden drop in Bitcoin’s price to $80,000 has triggered large-scale liquidations across the crypto market. Several high-profile accounts, including Aave whales and well-known traders, have suffered losses exceeding $30 million. These forced liquidations highlight market volatility.

Aave Whale Faces $11.41 Million Liquidation

A major liquidation event impacted an Aave whale, identified by wallet 0x94de…940a, according to blockchain security firm PeckShield. The liquidation, valued at $11.41 million, occurred as Bitcoin’s price hit $80,000 early Friday. The forced closure came after the whale’s loan-to-value ratio exceeded Aave’s threshold.

On-chain data shows the whale had leveraged $10.55 million in wrapped Bitcoin, 116.66 wrapped Ether, and $9.9 million in Aave tokens. As Bitcoin’s price plunged, the account’s position collapsed, causing the liquidation. The seizure of collateral, including 56.61 ETH, totaled the $11.41 million loss.

This incident is part of a broader trend affecting Aave whales. The liquidations suffered by the wallet have now reached nearly $20 million. These losses reflect the risk of leveraging in a highly volatile market.

Second Whale Experiences $1.92 Million Loss

Another Aave whale, identified by wallet 0x3436…2094, faced a liquidation of $1.92 million during the same market downturn. This account used wrapped Bitcoin and wrapped staked Ether as collateral to borrow USDT and USDC. As Bitcoin’s value dropped, the position fell below the collateralization threshold.

PeckShield reported that this wallet’s total liquidations now amount to almost $5 million. The whale’s exposure highlights the risks of leveraged positions in volatile markets. The series of liquidations is a reminder of how quickly market movements can wipe out leveraged positions.

Jeffrey Huang’s Account Fully Liquidated in Market Crash

Jeffrey Huang, a well-known trader and former actor, also fell victim to the market collapse. His trading account was fully liquidated, leaving just $15,538. This resulted in staggering losses of $20.23 million from his crypto positions.

Huang’s primary trading account had been placing leveraged long bets on Ether, according to Lookonchain. Despite depositing 115,000 USDC to maintain his positions, his account was wiped out as the market corrected. Data from Hyperliquid revealed that Huang’s most recent position involved a 25x cross-margin long on Ether.

The liquidation wiped out nearly all of Huang’s trading funds. It underscores the risks that even prominent traders face in today’s volatile crypto environment. His losses add to the growing trend of large-scale liquidations within the market.

The broader crypto market continues to struggle with the effects of massive liquidations. In the wake of Bitcoin’s sharp decline, several other whales and traders have experienced severe losses. One example is the so-called “Anti-CZ Whale,” whose profits dropped from $100 million to $38 million after the market downturn.

The recent selloff in Bitcoin ETFs also contributed to the broader market’s weakness. BlackRock’s IBIT saw $355.5 million in outflows, while Grayscale’s GBTC experienced withdrawals of $199.35 million. These outflows have intensified concerns about Bitcoin’s ability to recover before the end of the month.

The post Aave Whale Hit with $11.4M Liquidation as Bitcoin Drops to $80K appeared first on CoinCentral.