$24 Million Loss on Ethereum: Account Bets on ENA Rally with 2x Leverage

Lookonchain reported that the pension-usdt.eth account’s approximately $111.34 million short position on Ethereum was liquidated with a $23.9 million loss, after which the account opened a new 2x leveraged long position for 300,000 ENA.

The position was 49,808 ETH in size, with a total value calculated at approximately $111.34 million. The realized loss following the liquidation was $23.9 million. The transaction history record shows a similar loss for a short position of approximately 50,000 ETH.

A short trade is a position aimed at profiting if an asset’s price falls. Losses grow when the price moves contrary to expectations. When losses reach a certain level, the forced closure of the position is called liquidation. Therefore, $111.34 million does not represent the money lost by the account, but rather the total size of the trade.

Account opens new position in ENA following ETH loss

Following the liquidation, the account first claimed a $25,920 reward. Subsequently, it opened a 2x leveraged long position for 300,000 ENA worth approximately $43.8 thousand. This new position targets gains when the ENA price increases; 2x leverage means taking a larger position with smaller collateral.

The pension-usdt.eth account had previously earned $49 million in profit and stood out with a 23-trade winning streak. However, the final outcome of the new ENA position is not yet known. Since the result of the position is currently unknown, it cannot be said whether it has compensated for the previous ETH loss.