On January 22, a sudden 4% market spike triggered a cascade of liquidations in the crypto derivatives market. One significant casualty: a trader holding a $332M short position saw roughly one-third of their bet forcibly closed, according to on-chain analyst EmberCN's latest analysis reported by TechFlow.
The hit was substantial. The trader's paper gains—which had peaked at $24M—crashed down to just $4M in minutes, meaning they forfeited $20M in unrealized returns in a single move. The account 0xD83...Fd7, identified as the position holder, didn't take the loss sitting down. Post-liquidation, t