Ethereum News Today: Over $1 Billion in Leveraged Crypto Positions Liquidated Amid PPI-Driven Panic

Over $1 billion in leveraged positions across major cryptocurrencies were liquidated within 24 hours on Aug. 14, as the market reacted to macroeconomic concerns tied to inflation [1]. The collapse was triggered by the release of the July 2025 U.S. Producer Price Index (PPI), which showed a 0.9% monthly increase in wholesale prices—the largest gain in three years. This data fueled fears that the U.S. Federal Reserve may delay interest rate cuts, amplifying pressure on asset markets and triggering panic selling [1].

Ethereum (ETH) was the hardest-hit asset, with $346.46 million in combined long and short positions liquidated over the period. Bitcoin (BTC) followed with $177.8 million in total liquidations. Long positions dominated the losses, indicating that traders had been betting on continued upward momentum in crypto prices as the market neared a $4.3 trillion peak [1].

Among the most high-profile casualties was the whale trader known as Aguila Trader, who reportedly lost 18,323 ETH—valued at $83.56 million—during the crash. This single liquidation brought his cumulative losses to over $37 million, leaving him with just $330,000 in remaining capital, according to on-chain analytics firm Lookonchain. The incident marks a sharp downturn for the trader, who had previously lost more than $200 million in a leveraged ETH short trade just days earlier [1].

The sudden collapse of these leveraged positions contributed to a self-reinforcing cycle of selling pressure. As large traders and institutions saw their positions wiped out, the resulting liquidity crunch accelerated the downward spiral of crypto prices. This is a common dynamic in leveraged markets, where concentrated positions can influence broader price movements when liquidated en masse [1].

The event also underscores the increasing interconnectivity between crypto markets and traditional financial markets. Inflation metrics, which historically had less influence on crypto price action, are now shaping investor sentiment and trading behavior. As crypto participants increasingly use derivatives and margin trading, their exposure to macroeconomic shifts grows, making markets more vulnerable to rapid corrections [1].

The Aguila Trader incident serves as a cautionary tale for leveraged traders, especially in a volatile environment where leverage can amplify both gains and losses. The $83.56 million loss in a single day highlights the extreme risks associated with using high leverage in a market that can reverse direction rapidly. With crypto markets continuing to mature and attract institutional capital, the role of leverage—and the risks it introduces—will remain a critical consideration for both traders and regulators [1].

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[1] title1: More Than $1 Billion in Leveraged Bets Wiped out; Whale ... (https://news.bitcoin.com/more-than-1-billion-in-leveraged-bets-wiped-out-whale-trader-loses-83m-in-eth-liquidation/)