A series of recent high-profile losses shook market confidence in Ethereum [ETH]…just as the available supply fell. This is a recipe for chaos and could lead to chaotic movements in the price of the token.
Here is the summary.
A $750 million bet went wrong
Trend Research, led by Jack Yi, built one of the largest leveraged positions in Ethereum on the market. This is a $2.6 billion ETH built over a long period of time using loans from Aave. [AAVE]. The trade was a big bet on the upside of ETH, which got bigger thanks to leverage.
That bet has now been completely undone.
Source: X
On-chain data showed that Trend Research sold its entire ETH position this month, raising $1.74 billion to repay outstanding loans. The subsequent result was a realized loss of approximately $750 million.
The fund’s wallets now have just over $10,000 in total assets, including $10,000 USD Coin. [USDC] and negligible exposure to ETH.
