Crypto Trader’s $26M ETH Short Backfires Spectacularly—Now Staring Down $716K Loss

Another day, another crypto cautionary tale. This trader had victory in their grasp—until the market flipped the script.

When greed meets leverage

Shorting ETH near its peak seemed like easy money—until the rally refused to die. That paper $26M profit? Gone faster than a memecoin pump.

The reckoning

Now they're nursing a $716K loss. Pro tip: maybe don't bet against the second-largest crypto asset during institutional adoption season. But what do we know—we just report these trainwrecks.

Wall Street's favorite circus act

Meanwhile, traditional finance bros are taking notes—for their next 'risky crypto' PowerPoint. At least the entertainment value never dips below ICO levels.

On-chain data shows that there are no other active long positions by the trader, raising questions about the reason behind the risky move. The trader seems to have a high bet on ETHUSD short, but when the bet failed, he ended up with a loss.

This story has also drawn comparisons with that of James Wynn, another big trader on Hyperliquid. Wynn lost over $100 million after a massive Bitcoin long amounting to a billion dollar was wiped out in May, following Trump’s tariff announcement.

The recent loss adds to growing concerns about extreme risk-taking. While the trader once seemed like a top performer, this MOVE reflects how fast things can flip if proper trading cautions are not taken.

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