TechFlow news, November 18 — According to on-chain analyst Yujin, a whale investor who accumulated a large amount of crypto assets through circular lending is now facing severe liquidation risk. On-chain data shows that the investor amassed WBTC and ETH worth $263 million over the past three months, but the recent continuous market downturn has pushed their position to the brink of liquidation.
To avoid forced liquidation, the investor has recently been compelled to sell 1,316.8 ETH, receiving 4.017 million USDT to repay part of their debt. Nevertheless, they still have an outstanding USDT loan of up to $146 million on Aave, with a health factor of only 1.05.
Data indicates the whale’s average acquisition cost for these crypto assets is quite high: WBTC at $116,762 and ETH at $4,415 on average, resulting in an unrealized loss of approximately $65.49 million so far. If Bitcoin and Ethereum drop another 5%, their position will face forced liquidation, and collateral will be partially sold to settle debts.
