Large crypto investors deploy strategies to avoid liquidation risk through position adjustments

In the cryptocurrency market, large investors are strengthening their risk management in response to market fluctuations. Recently, on-chain data monitoring shows that investors who suffered significant losses on Hyperliquid are actively engaging in deleveraging and implementing measures to avoid liquidation pressure. According to ChainCatcher’s report, the strategic responses of these investors and their background have been revealed.

Losses and Risk Realization on Hyperliquid

On January 27, this major investor used leverage to purchase 148,000 ETH at an average price of approximately $2,883, with a total investment of about $426 million. However, due to a sudden market environment change, ETH’s price plummeted to around $2,200, causing the investor’s positions on Hyperliquid to be liquidated one after another, resulting in a massive loss of approximately $230 million.

At the same time, the investor’s on-chain spot positions also faced a critical situation. With the liquidation threshold imminent, the investor had to urgently consider risk mitigation measures.

Implementation of Deleveraging to Reduce Risk

The primary measure the investor took to avoid liquidation was reducing leverage on their on-chain spot positions. Over the past two days, the investor sold about 50,000 ETH (worth approximately $112.8 million at the time), beginning to compress their position.

This strategic deleveraging significantly lowered the investor’s overall liquidation price to around $1,600. In other words, as long as ETH’s price does not fall to this level, additional liquidation risk can be avoided.

Current Asset Scale of the Investor and Market Impact

Currently, the investor’s on-chain holdings remain substantial. Data shows that the investor holds approximately 33,000 BTC (current market value around $68.8K, totaling about $22.7 billion) and 748,000 ETH (current market value around $2.05K, totaling about $15.3 billion), with a total asset value of approximately $42.13 billion.

This large investor’s position adjustment is not merely an individual risk mitigation measure but also has significant implications for the overall market. Whether this deleveraging trend among major players will continue could be a key factor influencing cryptocurrency market price fluctuations.