The $125,000 ETH Long Position: A Whale’s Risky Exit
- Whale liquidates $125,000 ETH position after risky exposure increase.
- Trader faced liquidation but didn’t reduce position, leading to $6M loss.
- Event highlights dangers of leveraged trades amid Ethereum market volatility.
In August 2025, a trader known as “Gun Cang Ge” navigated a perilous $125,000 ETH long position, pushing it to $146 million exposure, ultimately closing at a multi-million dollar loss.
The incident revealed the considerable risks of aggressive leverage strategies in volatile markets, prompting discussions among analysts and traders on the need for more cautious risk management.
A recent case involved a trader known as “Gun Cang Ge” who escalated a $125,000 ETH long position to a $146 million exposure. Despite facing potential liquidations, the trader did not reduce risk, ultimately exiting with losses.
The individual, a whale with known aggressive leverage strategies, operated without institutional backing. Insights from on-chain analysts included the likes of EmberCN and Cipher X, who tracked and reported on the high-stakes maneuvers.
On-chain data reflected volatility as the whale’s position neared liquidation between $4,080 and $4,623.97 per ETH. A simultaneous sharp drop in Ethereum DeFi TVL and futures market metrics underlined the market reaction.
The lack of position reduction amidst market volatility resulted in a $6.21 million loss. The episode underscores the high risks associated with rolling profits into leverage amid changing crypto-market conditions.
Previously, similar liquidation scenarios since DeFi Summer demonstrated the risks of overleveraged ETH/BTC positions. However, the concentration in this instance set a record, emphasizing the substantial risk borne by high-rolling individuals.
Market analysts warned of potential cascading sales if ETH price fell significantly. The event serves as a cautionary tale for both retail and institutional traders to carefully assess leverage use, particularly in highly volatile markets. According to Cipher X, “Over $2 Billion in longs could be liquidated if $ETH dips to $4,200. Breaking this level could spark a cascade of forced selling across exchanges.”
