How did a company lose almost all of its $ETH

This is arguably one of the loudest capitulations in crypto during this sell-off, and a major source of $ETH selling in recent days.

There’s a Hong Kong investment firm called Trend Research, which became known for its massive leveraged long position on Aave worth $2.6B.

They built the long using borrowed funds at an average $ETH price of $3,267. When the price started dropping, Trend Research was forced to sell ETH throughout this week to service and repay the loans.

In the end, the company sold $1.8B worth of ETH at an average price of $2,326, locking in total losses of around $750M. They’re left with only $44M.

It’s sometimes hard to believe that firms with that kind of capital make such basic mistakes. No strict RM, excessive leverage, betting on a single scenario, and ignoring market volatility — all of that ultimately led to capitulation.

Let this be a reminder for you too: never overextend risk, don’t trade without a plan, and don’t assume “it can’t happen to me.” The market punishes everyone the same — regardless of deposit size.