Wallet with $49 Million in Profit Loses $24 Million in 12 Seconds on Ethereum Short

The wallet known as pension-usdt.eth lost approximately $24 million in just 12 seconds after its Ethereum short position was liquidated, marking one of the most striking instances in the $2.74 billion short liquidation wave across the market.

According to Hyperliquid records, the wallet identified as “pension-usdt.eth” held a short position on Ethereum for more than two months. The position was forcibly closed on Thursday morning as major cryptocurrencies rallied simultaneously. As a result, the leveraged trade wiped out a significant portion of the wallet’s previous earnings in a single move.

Earlier this year, the wallet had generated approximately $49 million in profit from trades betting on a decline in crypto prices. It earned about $6 million from a 60,000 ETH short in June and $3.6 million from a 1,400 Bitcoin short. The final position remained open for 1,445 hours, or slightly over two months.

Ethereum Liquidation Completed via Five Separate Sales

Hyperliquid data showed that the 12-second liquidation process occurred between 04:51:03 and 04:51:15 through five separate forced sales. In the first four sales, 9,989 ETH was closed at $2,193, 20,698 ETH at $2,209, 15,830 ETH at $2,214, and 1,871 ETH at $2,236.

In the final transaction, when no buyer could be found for 1,417 ETH, Hyperliquid took this amount into its insurance fund held for such scenarios. During the liquidation, Ethereum rose by $43; the trader’s forced purchases accelerated the price action while increasing the cost of the liquidated portions. Within the same 24-hour period, $2.74 billion in short positions were liquidated across the broader market. This wave represented the largest forced short-covering event in records dating back to 2021.