Crypto Trader Qwatio Earns $6.8 Million in a Day, Faces $10 Million Loss

Crypto trader Qwatio made headlines by earning over $6.8 million in a single day, utilizing 50x leverage on Hyperliquid. This significant profit was achieved by going all-in on Bitcoin and Ethereum right before a market-shaking event. However, Qwatio's fortunes took a dramatic turn when he allowed 160,000 ETH, valued at $306 million, to be liquidated, resulting in substantial losses for Hyperliquid’s Liquidity Provider (HLP).

In response to the incident, Hyperliquid reduced the maximum leverage on ETH from 50x to 25x to mitigate similar risks in the future. Qwatio's aggressive trading strategy inspired copycats, leading to further market disruptions. One notable incident involved the manipulation of the JELLY token, which resulted in an additional $12 million in losses for HLP. Qwatio himself became a target of a group of whales, led by user “CBB,” who attempted to exploit his trades. Despite a 2.5% spike in Bitcoin, Qwatio managed to defend his position by adding more margin.

Qwatio briefly revealed his identity by confirming a wallet linked to the MELANIA token, but he quickly deleted the post and changed the wallet’s name to “falllling” to avoid further attention. Despite the setbacks, Lookonchain reported that Qwatio's wallets still showed over $10 million in total profit. However, further analysis by Lookonchain revealed that Qwatio was liquidated six times in three days, losing nearly $10 million. The most significant loss came from a $3.37 million ETHUSDT trade on Binance.

Despite these losses, Qwatio remains active in the market. Just two hours ago, he deposited $4.5 million USDC and is once again going long on BTC and ETH, demonstrating his resilience and continued involvement in the volatile crypto trading landscape. Qwatio's story serves as a cautionary tale about the risks and rewards of high-leverage trading in the crypto market, highlighting the potential for both massive gains and devastating losses.

Ask Aime: What was Qwatio's strategy to achieve such a massive profit, and how does it relate to the recent market disruptions in crypto trading?