$1.49 million position at risk, the swing trader's PAXG short position faces a dilemma

AirdropHunterKing · 2026-03-02T17:07:06+00:00

On January 21, a trader known for high-frequency swing trading reduced their short positions in the PAXG market, incurring a loss of $151,000, with a loss rate exceeding 50%. Although the trader had previously made nearly $100 million in profits, they still faced significant risks amid market volatility. This reduction in positions is seen as a strategy to control losses.

AirdropHunterKing

2026-03-02 17:07:06

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On January 21, according to on-chain data monitoring tools, a trader known for high-frequency trading in the wave band experienced a significant fund adjustment in the PAXG (on-chain gold) market. In a short position worth $1.49 million, they closed part of their position—reducing 78.14 PAXG shorts valued at approximately $373,000. After this operation, the total value of their PAXG short position shrank to $1.494 million.

Forced Choice Under Heavy Losses

Notably, when executing the reduction, the trader’s account was in deep loss. The floating loss on the current position had reached $151,000, representing a loss of 50.66%. The average entry price was $4,399.04, while the liquidation price was set far above the current market price at $61,360.732—indicating the short position was in an extremely dangerous zone.

In contrast, recent market data shows PAXG’s current price has risen to around $53,200, more than 20% above the average entry price. This price divergence further amplifies the risk of loss on the short position.

The Double-Edged Sword of Swing Trading

This address’s trading style is highly aggressive. The average holding time per position is only about 20 hours, accumulating substantial wealth through multi-asset, high-frequency swing trading. Since October last year, with a principal of $20 million, they have realized nearly $100 million in profits, achieving a 500% return.

However, this high-risk, high-frequency trading approach also makes them vulnerable to significant losses if their market judgment falters. The deep loss on the PAXG short position is a direct illustration of the risks inherent in this trading strategy—despite extensive experience and a large profit record, market volatility can still pose insurmountable challenges.

The trader’s decision to reduce their $1.49 million position may be a way to limit risk, attempting to lock in losses before the situation worsens.

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