Massive ETH Transfer Sparks Panic as High-Profile Trader Is Wiped Out

Ethereum fell 17% in 24 hours on Feb. 1, 2026, triggering $2.6B in liquidations as a high-profile trader was wiped out.

The Ethereum market faced sharp stress on February 1, 2026, after a large ETH transfer coincided with a major liquidation.

A high-profile trader was wiped out as prices fell fast during thin weekend trading. The event triggered heavy liquidations across the broader crypto market.

High-Profile Trader Liquidation Shakes Ethereum

Ethereum dropped sharply within 24 hours on February 1, 2026. The price fell from about $2,700 to a low near $2,248. This marked a decline of roughly 17% during the period.

Garrett Jin, a high-profile crypto trader known for a strong prior track record, was fully liquidated after taking a $900 million leveraged long position.

He had previously made about $100 million from a short trade in October, but this time the market moved sharply against him, showing how fast leverage can erase gains in volatile crypto markets.

Later reports confirmed total realized losses of about $250 million. The trading account was nearly drained, leaving a remaining balance of roughly $53.

The liquidation occurred rapidly as ETH breached key levels during low liquidity hours.

Massive ETH Transfer Fuels Market Panic

Market tension increased after reports of a large ETH transfer to Binance. On-chain data showed 100,000 ETH, worth over $243 million, moved to the exchange.

Such transfers are often viewed as potential sell signals.

The timing of the transfer aligned with the liquidation event. This connection raised concerns among traders watching exchange inflows. Panic selling intensified as prices continued to slide.

Other large holders also moved funds during the downturn. Trend Research, linked to LD Capital, transferred 10,000 ETH to Binance on the same day.

The firm held a reported 600,000 ETH position facing liquidation risks near $1,558.

Additional high-profile losses were reported during the period. Huang Licheng, also known as “Brother Machi,” saw his leveraged position fully liquidated on January 31.

Another address labeled the “CZ counterparty” lost more than $10 million in unrealized gains.

Related Reading: Ethereum Price Warning: $1,600-$1,800 Could Be the Smart Entry Zone

Broader Market Liquidations and External Pressure

The ETH crash contributed to a wider liquidation wave across crypto markets. Data showed about $2.58 billion in total liquidations within 24 hours.

Long positions accounted for roughly $2.42 billion of that amount.

Ethereum-related contracts represented a large share of the losses. Nearly $961 million in ETH futures positions were wiped out during the drop.

More than 434,000 traders were liquidated across exchanges.

Several factors added pressure to the market. The selloff occurred during a weekend session with limited liquidity. This amplified price movements as orders moved markets faster.

Broader risk sentiment also weakened. Reports cited rising geopolitical tensions in the Middle East during the same period.

New SEC guidance on tokenized stocks also weighed on investor confidence.

Traditional markets showed stress as well. Spot gold and silver posted rare double-digit declines on the same day.

Analysts described the move as a broad shift toward cash across asset classes.

Institutional holders were not immune to the downturn. BitMine reported a paper loss of about $6 billion on its Ethereum holdings as prices approached $2,300.

The loss reflected valuation changes rather than forced selling.

The sequence of events showed how leverage, liquidity, and large transfers can combine. Ethereum remained volatile as traders assessed risk following the sharp decline.

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