Ether's crash leaves $686 million gaping hole in trading firm's book
Trading firm Trend Research suffered a $686 million loss after its leveraged long ether position unraveled during the recent crypto price crash.Summary
The trading firm Trend Research, led by Jack Yi of Liquid Capital, incurred an estimated $686 million loss this week when its massive, leveraged long position in Ether (ETH) collapsed following a sharp price drop. The firm had built a $2 billion bullish bet by borrowing stablecoins from Aave, collateralized by ETH. As ether's price fell rapidly, hitting a low near $1,750, the collateral value shrank against the fixed debt, leading to the position's liquidation. Trend Research liquidated over 332,000 ETH, worth approximately $700 million, to repay debt on Aave. Despite the massive loss, Jack Yi stated on X that the firm remains optimistic about the long-term bull market, expecting ETH to exceed $10,000 and BTC to surpass $200,000, characterizing the sales as necessary risk-control adjustments.
(Source：CoinDesk)