Summary of Losses
- •Zcash trader loses $2.38 million after forced liquidations devastate account.
- •Aggressive ZEC long positions trigger massive losses in hours.
- •Market volatility wipes out trader’s $72 million in trading volume.
A Zcash trader has suffered a devastating blow, losing $2.38 million in just a few hours after a series of forced liquidations. According to HyperTracker data, the account tied to wallet 0x9bf3….bf6cf9 now holds only $23,942.44, down from much higher equity levels just hours before.
The trader had aggressively opened several high-leverage long positions between 04:49 and 04:51 UTC, betting that the price of ZEC would rise. Each position was valued at around $100,000, but the market swiftly moved against them. ZEC, which had been trading around $487–$488, plummeted below $465, triggering forced liquidations from the exchange’s risk engine.
Volatility and Market Shifts Spark Huge Losses
Four major positions were liquidated almost simultaneously, with the assets sold between $447.88 and $452.72, leading to realized losses exceeding $1.58 million. This incident marks one of the worst wipeouts recorded on HyperTracker, with cumulative losses for the account now at a staggering $2.38 million.
Prior to the crash, the trader had generated over $72 million in trading volume, underscoring their involvement as a significant market participant. Despite their large-scale trading, the lack of proper risk management left them vulnerable when Zcash’s price dropped sharply.
The volatility in the ZEC market played a key role in this catastrophic loss. ZEC experienced a significant 6.64% drop within 24 hours, pushing the price down further and triggering liquidations. The market’s diminished liquidity, with a 13% decrease in 24-hour trading volume, amplified the trader’s losses as the positions were closed at a lower price.
This event serves as a powerful reminder of the dangers of high-leverage trading in volatile markets. Even the most experienced traders can face catastrophic losses when the market moves against them and proper risk controls are not in place.