Hyperliquid Trader Faces 5 Liquidations, Loses $3.7M

The Trader's Tragic Tale of Shorting in a Bull Market

A trader known by the pseudonym Qwatio on X has faced significant financial losses after repeatedly shorting Bitcoin (BTC) and Ethereum (ETH) during a recent market upswing. This strategy backfired, leading to multiple liquidations that have severely impacted their trading account.

A Series of Liquidations

Over the weekend, Qwatio was liquidated five times, bringing the total number of liquidations to ten within just a few days. According to crypto market activity tracker Lookonchain, Qwatio placed highly leveraged bets against BTC and ETH, which resulted in approximately $3.7 million in losses over the past week.

Data from CoinGlass indicates that 387 BTC worth about $42.18 million and 2,990 ETH valued at $7.65 million were liquidated from Qwatio’s account. Initially holding a balance of $16.28 million, the account is now worth only $610,000, recording a staggering $15.67 million in realized losses.

The Impact of a Bullish Executive Order

Qwatio had opened $200 million worth of 50x leveraged short positions on BTC and ETH just hours before US President Donald Trump signed an executive order establishing a national crypto reserve in March. The market interpreted this as a positive development, pushing crypto markets alongside BTC to new highs, which triggered Qwatio’s early losses.

Additionally, Qwatio was known for holding a large position in the Melania coin during its initial launch in 2025. Despite losing thousands of dollars, they continued shorting the two largest coins by market cap into the second quarter of the year.

A Risky Bet on Bitcoin

On July 4, after already being liquidated 10 times, Qwatio opened another short position against Bitcoin, betting 21 BTC valued at $2.3 million while the asset was trading at $109,135, just $2,000 down from its all-time high level. Since then, the price of Bitcoin has dropped to $108,993, and Qwatio will be hoping it continues to fall against predictions from analysts who suggest that BTC is in a “weak positive” short-term market sentiment.

Surge in Liquidations Across the Crypto Market

Qwatio’s losses occurred amid a broader surge in liquidations across the crypto derivatives market. In the 24-hour period ending July 7, total liquidations across all major cryptocurrencies reached $184.16 million, according to CoinGlass. This included $47.14 million in long positions and $137.01 million in short positions, indicating a strong squeeze on bearish traders as markets moved higher.

Ethereum led the liquidation totals with $64.14 million wiped out, including $49.62 million from short positions and $14.52 million from longs. Bitcoin followed closely behind with $35.38 million liquidated, including $31.25 million in short positions.

Many traders, like Qwatio, misjudged the market direction and were caught off-guard by the strength of the market uptick.

NVT Golden Cross and Price Predictions

According to a CryptoQuant analysis, the NVT golden cross successfully flagged three recent tops in 2025: February 2, March 24, and June 16. On each occasion, the indicator peaked above the 2.2 threshold, coinciding with BTC price highs of $97,600, $87,500, and $106,800 respectively. Each peak was followed by corrections of -23.65%, -16.06%, and -9.87%.

As of the latest reading, the NVT GC stands at 1.98, yet to breach the 2.2 signal line again, but has room for a price momentum on the upside. Analysts believe that if the NVT crosses 2.2, there will be a price pullback for several days.

The Ripple Effect on Derivatives Platforms

Bitcoin’s price rise has triggered a chain reaction across derivatives platforms, particularly on Binance, where short positions have been on the rise. Many traders appeared to interpret the rally as a selling opportunity. However, the continued ascent in BTC’s price forced many of these short-sellers into liquidation or margin calls.

The liquidations have helped fuel a bullish feedback loop, accelerating the upward price movement. When bearish bets are squeezed out of the market, bullish momentum builds, a pattern visible in this week’s trading behavior.

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