Trader 0xSifu Ends Short ETH Position with Nearly $2.4 Million Loss
The cryptocurrency market has experienced a robust surge, leaving traders with no choice but to cut their losses or face liquidation. Notably, the renowned short ETH order by 0xSifu found itself in a similar predicament, with the trader reluctantly closing the position at a staggering loss of $2.4 million USD.
As reported by AZCoin News on October 24, 2023, the cryptocurrency market turned bullish as Bitcoin soared to $34,700, reaching its highest point since the LUNA – UST crash. During this time, Ethereum (ETH) was priced around $1,820. However, 0xSifu had opened a leveraged short position on ETH on the Synthetix decentralized exchange (DEX). The bearish position amounted to over $21 million, with the average short ETH price at that time being $1,643, resulting in a loss of $2 million.
Despite the market’s bullish momentum in the following days, with ETH prices showing no signs of slowing down, the short order became increasingly risky. The trader had to gradually close the position, reducing the exposure to $12.5 million USD while persevering through challenging market conditions.
Sifu.eth closed his short position after $2m loss. pic.twitter.com/NejP6laelL
— CBduck 🛡️ (@CoinbaseDuck) November 9, 2023
However, as the market transitioned from the bullish “Uptober” to the bullish “Moonvember” in November, both BTC and ETH reached their 2023 peaks, putting 0xSifu in a challenging position of enduring consecutive days of losses.
Finally, after reassessing the market and likely redrawing charts, 0xSifu decided to close the entire short ETH position, accepting a substantial loss of nearly $2.4 million on November 10.
While the loss may not be overly significant for a trader capable of initiating a $21 million position, it serves as a sobering reminder for all market participants. The incident highlights the importance of using stop-loss orders and exercising caution when employing high leverage.
As of the latest update, ETH is trading around $2,056, having peaked at $2,140. Without closing the position, this high-profile short order might have faced forced liquidation. The incident underscores the volatile nature of the cryptocurrency market and the importance of risk management strategies for traders.
- Users Advised To Revoke Contracts Following SushiSwap Attack
- Sushi Head Chef Jared Grey Issues Official Statement On SEC Investigation
- Tensions Rise As SushiSwap Labels Lido Finance’s Actions As ‘Theft’ In Ongoing Dispute
- A DEX Trader Faces $18.5M Loss As SushiSwap Holdings Plummet