Trader @qwatio’s $334M Short Wipe Pushes Total Losses to $25.8M

Crypto trader @qwatio has suffered another massive loss after high-leverage short positions worth $334 million were fully liquidated. According to Lookonchain, the liquidation wiped out positions that included 1,743 BTC worth $211 million, 33,743 ETH worth $102.3 million, and 15 million FARTCOIN worth $20.6 million. The entire wipeout occurred within just three hours.

This loss comes only days after @qwatio was previously liquidated for 458 BTC ($55M), 12,147 ETH ($36.55M), and 5.4M FARTCOIN ($7.33M). These consecutive losses bring his total wallet drawdown to approximately $25.8 million, based on on-chain data.

Extreme Leverage, Extreme Risk

Earlier this week, @qwatio re-entered the market with $10 million in USDC after losing $16.28 million in a prior shorting attempt. He used 40x leverage to short 1,273 BTC, worth around $150 million, and 25x leverage to short 33,743 ETH, valued at $99.8 million.

His high-risk strategy gave him no room to breathe. Leverage boosted both his hopes and the danger. As the market turned bullish, his bearish positions collapsed fast. In volatile markets, even small moves can wipe you out when you’re overexposed.

Losses Mount Despite Repeated Entries

This isn’t @qwatio’s first major wipeout. His wallet, 0x916E, has become a public example of overleveraging gone wrong. In total, his losses now exceed $25.8 million across multiple trades. He remains one of the most closely watched wallets in the high-risk trading community.

Even after repeated wipeouts, he keeps diving back in with fresh cash. Whether it’s bold confidence or quiet desperation is anyone’s guess. But one thing’s certain, his trades now read like a live-action lesson in how brutal high-stakes betting can get.

Lessons for the Crypto Community

The crypto derivatives market has exploded in size and participation, but with it comes significant risk. Traders like @qwatio often use extreme leverage with minimal downside protection. While this strategy can result in eye-popping gains, it can just as easily result in total account blowouts.

High-leverage platforms, offering 50x or more, lure traders chasing fast wins. But in choppy markets, liquidations can spiral fast. It’s a reminder: know your risk limits and never bet more than you can stomach losing.

Market Outlook Remains Bullish

While @qwatio’s shorts were liquidated, broader market sentiment remains bullish. Bitcoin and Ethereum continue to see strong inflows, and trading volumes are surging. Liquidations like this often fuel upward momentum as positions are forcefully closed.

Still, the market serves constant reminder that reckless strategies often end in disaster. @qwatio’s story underscores the value of proper risk management, even in a bull run.