Recent on-chain data highlights one of the most important risk-management lessons in crypto this year.
Trend Research, led by Jack Yi, built a massive leveraged Ethereum long position estimated between $2–$2.6 billion, primarily using DeFi borrowing strategies. As Ethereum price dropped sharply during the recent market crash, the firm was forced to reduce and close most of the position to avoid liquidation.
According to multiple on-chain trackers, hundreds of thousands of ETH were sent back to Binance at much lower prices, locking in losses estimated around $700–$750 million. Only a small residual ETH position reportedly remains.
Why this matters:
Even institutional-size traders are not immune to volatility
Leverage amplifies risk, not just profits
DeFi borrowing strategies require strict risk control and exit planning
This event will likely be studied for years as a real-world example of how market structure + leverage + volatility can rapidly erase capital.
📌 Key takeaway: Survival in crypto trading depends more on risk management than conviction.
This content is for educational purposes only — not financial advice.