"On-chain gold short" adjusts strategy after a loss of 460,000, using BTC to hedge altcoin short positions

TokenomicsTrapper · 2026-01-22T07:54:11+00:00

A well-known trader reduced their position when shorting the gold token PAXG but did not completely exit the market. Instead, they adjusted their strategy by using high-leverage short positions and going long on Bitcoin to hedge, reducing overall risk, and successfully locking in gains and unrealized profits of $1,177,000, demonstrating flexible market decision-making skills.

TokenomicsTrapper

2026-01-22 07:54:11

Abstract generation in progress

【Blockchain Rhythm】On January 22nd, a trader known for shorting the gold token PAXG on-chain (0xfc667) showed signs of reducing their position. According to real-time on-chain data monitoring, this address currently holds 2,198.09 PAXG short positions, using 5x leverage, with an entry average price of $4,634.92. The unrealized loss on this position has reached $460,000.

Interestingly, this major holder did not fully cut losses and exit the market but instead adjusted their risk management strategy. On one hand, they continued to hold high-leverage short positions on altcoins; on the other hand, they simultaneously went long 32.09 BTC with 20x leverage for hedging. This “long and short” combined operation effectively reduced the overall risk of the account, which now has a total unrealized profit of $1.177 million—enough to offset the losses on the PAXG position.

This trading case reflects the flexible decision-making of major market players under pressure: not simply stopping loss and exiting, but maintaining risk exposure through cross-asset hedging while locking in profits.

PAXG0.27%

BTC-1.17%

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SchrodingerAirdrop

· 3h ago

460,000 loss still dares to use 20x leverage to go long on BTC, this guy is really tough... But speaking of which, this hedging operation is indeed impressive, it feels much smarter than simply cutting losses and stopping out.

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PumpAnalyst

· 01-23 13:00

This guy is really tough. Losing 460,000 and instead of cutting losses, he adds leverage to hedge? His courage is impressive, but I have to admit, this move does have some skill. However, it looks a bit risky to me—using 20x leverage to go long on BTC to cover altcoin short losses? That's basically betting that BTC won't fall. If it reverses, it's a chain reaction of explosions, brother. Good risk control awareness, but this kind of hedging method is too risky and dangerous—most people can't learn it. Gold tokens have always been tools for whales to cut leeks. It's not surprising that this brother hit a snag, but the key is whether he can survive the aftermath. Honestly, losing so badly with 5x leverage shorting PAXG shows how terrifying the rebound strength of this thing is. Currently, using BTC to hedge is basically just making up for losses in a casino. The total floating profit of 117.7K sounds good, but that's all based on BTC continuing to rise. If the market suddenly turns, it immediately drops back to the beginning. This is the game of big players. We retail investors should still play it safe and do some swing trading. Don't try this combo move; it's not for us.

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EthSandwichHero

· 01-22 08:22

This guy lost 460,000 but still dares to leverage hedge, really not afraid of a margin call. --- 20x BTC hedge against 5x PAXG short position, how scared do you have to be to do this? --- Got it, keep adding to the loss, betting that BTC will bounce back. Wow. --- Wait, can a floating profit of 1.177 million cover a loss of 460,000? His account is so thick. --- Basically, he's using a BTC gambler mode to save the PAXG mess, classic leverage to extend life. --- Does this brother really understand risk hedging, or is he just throwing a tantrum? Haha. --- Altcoin short plus 20x BTC long... this risk management makes me sweat for him.

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AirdropHunter420

· 01-22 08:19

Haha, this guy just won't admit defeat. Still stuck in a 460,000 trap and instead adds leverage to hedge. This move is really genius. --- Playing BTC with 20x leverage to buy the dip and cover PAXG losses? Gambling mentality, sooner or later it will blow up again. --- Wait, is it really a win if you hedge and have an unrealized profit of 1.17 million? On-chain data can be so deceiving. --- A typical "lose and then gamble again," hope this guy doesn't get liquidated in the end. --- Short altcoins and long BTC, interesting, but the risk leverage stacking is a bit intense. --- Really, big players dare to play. Even losing 460,000, they don't admit defeat directly, but go for a hedge turnaround. --- This is the story of Web3. People who refuse to give up make big money, those who give up eat dirt. Let's see how it ends for him. --- The higher the leverage, the faster the loss. If this guy gets liquidated, all 1.17 million unrealized profit will be gone. --- Prolonging life with hedging. It's less about risk management and more about gambling on the next market move. Very exciting. --- Why go short PAXG? So persistent? Always watching these strange coins on-chain, feeling a bit confused.

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PebbleHander

· 01-22 08:17

Haha, this guy is really hardcore. Even with a 460,000 loss, he doesn't admit defeat. He uses 20x leverage to go long on Bitcoin for hedging. How much pressure does that take? Losing so much and still daring to keep playing, I really admire that. But this kind of hedging is indeed clever. Instead of stop-loss, might as well gamble it all. That's how the crypto world is. Honestly, you need to have capital to be this reckless. We retail investors can only cut losses. This guy has a better mindset than me. Just ignore the 460,000 loss and keep going all-in.

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