Unable to Hold Anymore, 0xSifu "Reluctantly" Closes Short ETH Position with Nearly $2.4 Million Loss

The market has surged strongly, forcing leveraged traders to cut losses or face liquidation. The prominent short position on ETH by 0xSifu found itself in a similar situation, and its owner was compelled to reluctantly cut losses amounting to nearly $2.4 million USD.

Unable to Hold Anymore, 0xSifu "Reluctantly" Closes Short ETH Position with Nearly $2.4 Million Loss

While the market rises, not everyone is celebrating. Perhaps the most disappointed are those who went short, exemplified by former CFO of Frog Nation group, 0xSifu (sifu.eth).

As reported by Coin68 on October 24, 2023, the cryptocurrency market turned green as Bitcoin surged to $34,700 USD, its highest since the LUNA-UST crash. At that time, ETH was trading around $1,820 USD. However, 0xSifu opened a leveraged short position on ETH on the DEX Synthetix exchange.

The downward position amounted to over $21 million USD, with an average short price of $1,643 USD, resulting in a loss of approximately $2 million USD.

As we have witnessed, ETH has skyrocketed in recent days without showing any signs of slowing down. This situation posed extremely high risks for the short position, forcing the owner to gradually close the position down to $12.5 million USD and continue to hold.

However, after "Uptober" in October, we enter "Moonvember" in November, with BTC and ETH both reaching their highs for 2023, placing Sifu in an extremely difficult position of "holding losses" for several days.

In the end, perhaps after re-evaluating the new chart, Sifu finally closed out the entire short position, accepting a loss of nearly $2.4 million USD on November 10.

Of course, if one could open a position of up to $21 million USD, such a loss may not be a significant issue for Sifu. Nevertheless, this serves as a wake-up call for traders operating in the market to always use Stop Loss orders and limit the use of high leverage.

ETH is currently trading around $2,056 USD after peaking at $2,140 USD. If the position had not been closed, it likely would have been liquidated by now!

Chart: 1-hour ETH/USDT pair on Binance as of 01:00 PM on November 11, 2023.