Ethereum Faces $1 Billion Sell-Off as Major Fund Risks $862M Liquidation

Jack Yi's Trend Research is under intense pressure as its Ethereum holdings face liquidation, sparking a massive sell-off in the crypto market.

The crypto market is witnessing significant turbulence as a major leveraged Ethereum position established by Jack Yi's Trend Research unravels under mounting pressure. This investment, created through the Aave lending protocol, reportedly peaked at an astonishing $958 million in borrowed stablecoins, but is now diminishing as Ethereum's price continues to falter.

As Ethereum values drop, Trend Research has been compelled to execute defensive sales, further contributing to the downward price trend. In a move to stabilize its position, on February 4, the firm deposited an additional 10,000 ETH, attempting to mitigate the impact of its precarious situation.

This unfolding scenario has raised alarm among investors, highlighting the precarious nature of leveraged trading in the cryptocurrency market. With a liquidation risk estimated at $862 million, the stakes for Trend Research are exceptionally high as they navigate this challenging landscape.