A Whale's Leveraged Long Position on WBTC Results in $14.02 Million Loss, Leading to Liquidation

According to on-chain analyst Yu Jin, an address (0xc9db...5642) employed a leveraged long strategy on 742.8 WBTC over the past year. The strategy involved using a loop of collateralizing WBTC to borrow USDC and then using that USDC to purchase more WBTC, with an average entry price of approximately $89,137 per WBTC. Today, the address liquidated its entire position of 742.8 WBTC via FalconX at a price of $70,266 per WBTC. The proceeds of 29.75 million USDC were used to repay its debt on the Aave protocol. This series of transactions resulted in a cumulative loss of $14.02 million.