The Hyperiquid Digital Asset trading platform witnessed one of the largest surprises during last June, after the trader known as “0 XCB92” lost about 716 thousand dollars as a result of the closure of a sale deal on the Etherus with a loss, although the deal itself previously recorded unreasonable profits exceeding 26 million dollars before the trader reinforced its position by adding 10 thousand Eth.
The trader had a busy record of profits with Ether, as his profits in trading ended before the accident amounted to more than $ 5 million, according to data published by the “Lokonchain” account on the “X” platform, which also indicated that he achieved a 100% success rate on ETH deals.
The deal, which the trader began with a strong bet on the decline in Ether, has gradually retreated to the end of the end, which raised questions about his strategy in risk management, especially with the absence of active purchase centers in his governor.
The incident sparked comparisons with the loss of the trader “James Win”, who lost more than 100 million dollars after a billion billion dollar purchasing center was liquidated on May, after a sudden announcement by former US President Donald Trump about customs duties.
These cases reflect the increasing fears of high -risk trading activities, especially when traders ignore profit harvesting strategies or hedge against sharp price repercussions.
What is the sale (Short) and why did the trader lost?
The sale or “open sale” means that the trader is betting on the low price of the original, in this case the Ether currency (ETH), and the trader sells the original at a high price in the hope of buying it later at a lower price to make profit, but if the price rises instead of decreasing, the trader incur losses, and may be forced to close the deal at the stop loss point.
In the case of a trader 0xcb92 on the Hyper -royquid platform, the deal started selling 50 thousand ETH, and achieved unrealized profits exceeding 26 million dollars, but decided not to close the deal, but rather doubled its position by adding an additional 10 thousand Eth, although the price began to rise, this step increased the risks, and ended with an actual loss of 716 thousand dollars.
Why is this condition controversial?
This situation sparked controversy because the trader had a successful trading record rate of 100% profit on the ETH before this deal, and he did not have active (Long) purchase centers, which raised questions about the absence of a hedge strategy, and the decision to unlike the price direction without closing the deal is a high risk, especially in a highly volatile market such as digital currencies, as well as comparison with the loss of the trader “James Win” in the Bitcoin deal worth one billion dollars Fears are enhanced by excessive confidence and uncompromising betrayal.
What is the lesson from this incident?
This situation highlights the importance of risk management in trading, especially in the digital markets that witness severe fluctuations, even professional traders may fall into the trap of excessive confidence or ignore market signals, which leads to great losses in a short time.
