Bitcoin Short Seller Faces $5.25 Million Loss in a Month

A major investor who was short selling Bitcoin (BTC) has recorded 16 consecutive losses. The total realized loss over the past month has been estimated at $5.25 million (approximately 730 million KRW). The investor held a short position of $38.07 million (about 526 billion KRW) with 20x leverage for 60 hours before being forced to liquidate. The loss from this trade amounted to $288,000 (around 40 million KRW). It is reported that this investor changed their position to bet on a decline in BTC on the 19th and subsequently failed in 16 trades in the same direction. The disclosed figures are based on realized losses and pertain to a single account's trading results. This case illustrates the leverage risks in the derivatives market compared to the spot price of BTC. A 20x leveraged position is sensitive to price fluctuations and can quickly reach stop-loss or liquidation levels. Short selling is a trade that bets on price declines, yielding profits when prices fall but resulting in losses when prices rise.

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