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Ethereum trader earns $16M as ETH price falls to $3K
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Feb 2, 2025
🚨 A crypto trader turned Ethereum’s crash to 3,000 in to a 16 MILLION profit using a high-risk 50x leveraged short! Discover how they pulled off this insane trade, the hidden role of funding fees, and why leverage can be a double-edged sword. We break down the strategy, risks, and the $161K liquidation that shows how quickly fortunes can flip. ⚠️ From charts to psychology — this is the ultimate cautionary tale of crypto trading. #Ethereum #Crypto #Trading #Leverage #AllCoinSeller
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0:00
welcome back to allcoin seller today
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we're diving into how one Trader turned
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ethereum's six we price plunge into a
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staggering $6 million profit let's get
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started for 6 weeks ethereum's price was
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in freef Fall hitting a fragile
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$3,000 a level unseen in months while
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many investors were scrambling to cut
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their losses one Trader capitalized on
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the chaos pocketing an incredible $16
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million in this video we'll break down
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exactly how they did it and why the
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risks were
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astronomical this Trader executed a 50x
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leveraged short position here's how it
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works step by step borrow eth they took
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out a loan of ethereum from a brokerage
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sell immediately they sold the borrowed
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eth at about
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$3,388 each wait for the drop as
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ethereum's price tumbled they watched
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the market buy back cheaper once prices
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fell further they repurchased the same
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amount of eth at a lower price return
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eth and pocket profit after returning
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the borrowed coins the difference
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multiplied by 50 became pure profit with
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50x leverage even a small 2% drop in
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price results in a 100% gain but the
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flip side is brutal a 2% rise would have
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wiped out the entire investment
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according to blockchain analytics firm
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hyperscan the traders's position had a
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liquidation threshold of
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$464 this meant that if ethereum had
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risen to that that level the platform
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would have automatically closed the
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position to stop further losses
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fortunately the market moved in their
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favor and ethereum kept falling moreover
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aside from the $15.7 million profit from
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the short trade the trader collected an
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extra $2.3 million in funding fees
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payments exchanged between long and
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short positions in Perpetual Futures
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markets in this scenario the majority of
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Traders were long on ethereum so the
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short position not only profited from
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the drop but also from an imbalance in
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funding fees leverage trading is a
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double-edged sword for every Trader who
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makes a fortune countless others suffer
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massive losses in January 2024 a
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pseudonymous Trader lost
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$161,000 in under a minute after opening
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a leveraged long position right before
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ethereum's crash their collateral was
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instantly liquidated a harsh reminder of
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how quickly leverage can turn against
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you these two outcomes illustrate the
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brutal nature of Leverage one Trader's
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careful planning led to a multi-million
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dollar win while another's
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miscalculation resulted in a Swift and
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complete loss ethereum's plunge to
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$3,000 wasn't random several key factors
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contributed macroeconomic pressures
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Rising interest rates pushed investors
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towards safer assets ETF delays the SEC
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postponed decisions on spot ethereum
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ETFs triggering widespread sell-offs
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lower network activity declines in Dap
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usage and nft trading on ethereum
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signaled reduced demand traders who
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predicted these trends like our 16
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million winner positioned themselves
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early but even the best analysis can't
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always foresee a Market's sudden twist
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beyond the numbers success in leverag
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trading comes down to psychology
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discipline our successful Traders set
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strict entry and exit points and stuck
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to them risk management they Siz their
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position to handle Market volatility
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without overex exposure emotional
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control avoiding panic and fomo is
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crucial in such high-risk scenarios in
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contrast the trader who lost
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$161,000 likely ignored these principles
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risking too much on a volatile bet we
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spoke with industry experts to get their
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insights Clara Lynn from Atlas Capital
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leverage multiplies outcomes not skill
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many Traders underestimate the tail
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risks Marcus Carter from crypto Quant
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funding fees can be a hidden profit
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Factor if you understand Market
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sentiment an anonymous hedge fund
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manager institutional players use
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leverage with caution retail Traders
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using 50x are essentially playing with
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fire this $16 million trade is both a
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masterclass in opportunistic shorting
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and a cautionary tale remember leverage
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amplifies gains but also losses
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understanding funding fees and
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liquidation thresholds is key market
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trends and Trader psychology often
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outweigh technical analysis while the
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the Allure of quick profits is tempting
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sustainable success in crypto requires
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patience diligent research and a deep
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respect for risk as ethereum's price
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continues to swing the next headline
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might celebrate another millionaire
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Trader or warn of another massive
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liquidation if you found this breakdown
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insightful hit like subscribe and let us
4:49
know your thoughts in the comments below
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