A trader on Hyperliquid, known as Qwatio, experienced a significant loss approaching $3.7 million over the weekend due to extreme short positions on Bitcoin (BTC) and Ether (ETH). Qwatio's account value dropped dramatically from $16.28 million to $610,000, totaling a loss of $15.67 million. This aggressive trading strategy included a 40X leveraged short on BTC and a 25X leveraged short on ETH. Previously, Qwatio garnered attention for making 50X leveraged bets on these cryptocurrencies worth $200 million amid bullish market catalysts. Notably, in the last 24 hours, the broader market has seen liquidations of $50 million in ETH shorts and $31 million in BTC shorts. Qwatio's approach marks a shift from earlier strategies that favored long positions in these cryptocurrencies, highlighting the volatility and risks associated with high-leverage trading in the cryptocurrency markets.

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