A high-stakes gamble by the Hyperliquid trader known as Qwatio unraveled dramatically over the past week, with the trader seeing $3.7 million vanish amidst a series of liquidations on aggressive shorts of Bitcoin (BTC) and Ether (ETH). The losses, which occurred over the weekend, highlight the volatility and risks inherent in the crypto market, especially for those playing with extreme leverage.
A Risky Bet Gone Wrong
Qwatio, a trader whose strategies bear a resemblance to the high-risk tactics of James Wynn, found themselves in hot water after opting to short BTC and ETH at what appeared to be sessional lows. This move marks a stark departure from their earlier strategy this year, where bullish longs were the name of the game. According to on-chain data, the weekend saw Qwatio’s positions liquidated five times, an outcome that likely sent their pulse racing and their portfolio tumbling.
The trader first caught the attention of Crypto Twitter with a daring 50x leveraged bet on BTC and ETH valued at a whopping $200 million. This move came just before U.S. President Donald Trump inked an executive order to establish a crypto reserve—a decision that sent ripples through the market, acting as a broad bullish catalyst. It seems, however, that this time, Qwatio’s timing was more than a little off.
Market Waves and Liquidation Frenzies
This tumultuous episode for Qwatio unfolded during a broader wave of market liquidations. CoinGlass data reveals that in the last 24 hours alone, a staggering $50 million in ETH and $31 million in BTC shorts were liquidated across the market. It’s a scenario that underscores the perilous nature of leveraged trading, where fortunes can be made—or lost—in the blink of an eye. As explored in our recent coverage of $280 Million in Crypto Shorts Liquidated as Bitcoin Tops $110K, such massive liquidations are becoming a common occurrence in the crypto landscape.
“These kinds of swings are not uncommon in the crypto space,” explained Clara Jensen, a market analyst at Crypto Insights. “The market has a way of humbling even the most seasoned traders. Qwatio’s experience is a stark reminder of the unpredictable beast that is crypto volatility.”
The Rise and Fall of a Memecoin Enthusiast
Interestingly, Qwatio isn’t just known for high-stakes trading. Earlier this year, they were also a significant holder of the Melania memecoin during its initial phase—a fact that adds a layer of intrigue to their trading persona. Their involvement with the memecoin frenzy further cements their reputation as a trader willing to chase trends, regardless of the inherent risks.
Looking back, it’s clear that Qwatio has a penchant for bold moves. But as this recent episode illustrates, the line between audacity and folly can be razor-thin, especially in the fast-paced world of cryptocurrency.
Future Implications and Market Speculation
With the dust still settling from Qwatio’s losses, questions loom large over their next moves and what this might mean for broader market trends. Will they revert to their earlier bullish strategies, or continue to ride the wave of high-risk shorts? And what does this mean for other traders who might be watching Qwatio as a bellwether? For a deeper dive into how traders are positioning themselves amidst such volatility, see our analysis of Bitcoin DEX traders positioning for downside volatility.
Meanwhile, the market itself continues to dance to its unpredictable tune. For traders and investors, the recent liquidation frenzy raises pertinent questions about risk management and the sustainability of leveraged positions in an ever-evolving market landscape.
As the crypto world watches with bated breath, one thing remains clear: In this arena, fortune favors not just the bold, but the extraordinarily prescient. And while Qwatio may have stumbled this time, the next big play is always just around the corner.
Source
This article is based on: Hyperliquid Trader Qwatio Loses $3.7M This Week on Extreme Bitcoin, Ether Shorts
Further Reading
Deepen your understanding with these related articles:
- Traders Pile on Short Positions as Bitcoin Approaches All-Time High
- Bitcoin Climbs as Trump’s $5 Trillion Bill Sparks Market Volatility and Political Tensions: Your Weekly Crypto Market Update
- From $98K to $108K Amid Major Geopolitical Turmoil, Bitcoin’s Doing Pretty Well: Your Weekly Crypto Recap

Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.