A string of recent high-profile losses rattled market confidence in Ethereum [ETH]… right as available supply fell. This is a recipe for chaos, and could lead to chaotic price moves for the token.
Here’s the rundown.
A $750M bet gone wrongTrend Research, led by Jack Yi, built one of the largest leveraged Ethereum positions in the market. That was a $2.6 billion ETH long constructed using loans from Aave [AAVE]. The trade was a big bet on ETH’s upside, made bigger through leverage.
That bet has now been fully unwound.
On-chain data showed Trend Research sold its entire ETH position this month, raising $1.74 billion to repay outstanding loans. The subsequent result was a realized loss of roughly $750 million.
The fund’s wallets now hold just over $10,000 in total assets, including $10,000 USD Coin [USDC] and negligible ETH exposure.
