AI proxy token whale suffers painful liquidation, $30 million bet ultimately loses 92%

A major crypto whale heavily invested in the AI agent sector recently liquidated their positions, turning one of this year’s most talked-about speculative themes into a costly lesson. On-chain monitoring data shows that this address sold a portfolio of AI agent tokens worth approximately $31.12 million, ultimately recovering only about $2.57 million, resulting in an overall loss of around $28.54 million, with a loss ratio close to 92%.

The whale concentrated their holdings at the beginning of the year when the AI agent narrative was at its peak, as market funds flooded into tokens related to autonomous trading robots, AI-driven trade execution, and intelligent agents. However, as market liquidity continued to shrink and sentiment cooled, these narrative-dependent assets gradually lost support and were eventually forced to exit at very low prices.

Looking at individual tokens, the losses are equally staggering. AIXBT lost about 91%, approximately $15.89 million; FAI lost about 92%, nearly $9.87 million. NFTXBT and POLY from the Virtuals ecosystem were almost wiped out, with declines of up to 99%, losing about $690,000 and $780,000 respectively. AI art and curation project BOTTO declined about 84%, with losses of around $930,000, while MAICRO also fell about 90%, resulting in a loss of approximately $380,000.

Due to the limited market depth of these AI agent tokens, the whale’s concentrated sell-off directly impacted prices. On-chain analyst Yu Yan’s monitoring data shows that during the liquidation, AIXBT dropped about 10%, FAI fell 8%, NFTXBT declined 29%, BOTTO plummeted 32%, MAICRO fell 48%, and POLY decreased 26%. The thin order books amplified each sell-off, further driving down prices.

Arkham’s on-chain tracking indicates that this address engaged in intensive large transfers with multiple liquidity pools, suggesting this was an active stop-loss liquidation rather than a gradual long-term position adjustment. This implies the whale chose to lock in losses rather than wait for the AI agent narrative to recover.

This incident highlights the high-risk nature of the narrative-driven crypto sector. Many AI agent tokens were launched at the end of the hype cycle, lacking real use cases and sustained demand. Once funding shifted away, liquidity rapidly dried up. For the market, this serves as a risk warning and reflects that in areas with insufficient liquidity, even well-funded participants may pay a heavy price when exiting.