Overleveraging and Psychological Errors Sink Trader's $35M Bitcoin Gamble

A high-stakes Bitcoin trader known as AguilaTrades suffered a $35.84 million loss over two weeks in June 2025 due to repeated failures to secure profits on winning positions. The trader initially transferred $39.18 million in USDC from Bybit to Hyperliquid to trade Bitcoin perpetual contracts, but the account balance dwindled to just $4.09 million by the end of the period. The losses were attributed to a combination of market volatility, overleveraging, and psychological trading errors such as revenge trading and failure to take profitsBitcoin Price Faces Tight Range Between $112,000 and $114,600 Resistance^[4].

The downturn began on June 9, when the trader’s unrealized profits hit $5.76 million. However, a subsequent drop in Bitcoin’s price triggered a $12.47 million loss. A similar pattern repeated on June 15 and June 20, eroding gains of $10 million and $3.2 million, respectively. By June 20, the account faced a $17 million loss after another forced closure. The final blow came as the trader attempted a short position, losing an additional $2.33 million when the market reboundedBitcoin Price Faces Tight Range Between $112,000 and $114,600 Resistance^[4].

Despite the catastrophic losses, AguilaTrades managed a partial recovery. A 40x long Bitcoin trade executed after the liquidation generated $1.06 million in unrealized profits. This rebound highlights the volatile nature of leveraged trading, where rapid market movements can reverse fortunes. The trader’s case underscores the risks of high leverage, particularly in a market prone to sudden swingsBitcoin Price Faces Tight Range Between $112,000 and $114,600 Resistance^[4].

In contrast, another trader, identified as 0x51d9, demonstrated a successful high-leverage strategy. After accumulating $4.96 million in losses across six trades, the investor executed a precisely timed 40x short on Bitcoin, closing the position near the bottom of the market and realizing over $9 million in profit. This trade not only offset prior losses but also generated significant additional gains, illustrating how disciplined risk management can yield extraordinary outcomes in volatile marketsBitcoin Price Faces Tight Range Between $112,000 and $114,600 Resistance^[4].

The broader market context reveals a landscape of active whale activity. A separate Bitcoin whale deposited 1,176 BTC ($136.2 million) into Hyperliquid in September 2025, signaling renewed selling pressure after a two-week pause. The whale had previously exchanged 35,991 BTC ($4.04 billion) for 886,371 ETH ($4.07 billion) in August, a move that now faces an unrealized loss of nearly 460 BTC ($53 million) if the ETH were converted back to BitcoinBitcoin Whale Resumes Selling as Price Stalls at $116K^[1]. Meanwhile, a whale invested $10.5 million in ASTER, amassing an unrealized profit of $6 million as the token’s price stabilizedASTER Price Struggles at $1.55 Support as Whale Invests $10.5^[2].

Bitcoin’s price movements in late 2025 reflected mixed signals. The asset stalled at $116,000, a level it had briefly touched in late August, and faced strong resistance despite institutional accumulation of 23,000 BTC ($2.67 billion) in a single dayBitcoin Holds $115K Support, Traders Eye Critical Weekly Close Ahead of Fed Decision^[5]. Analysts noted that the market’s direction would hinge on the Federal Reserve’s interest rate decisions, with expectations of a 0.25% rate cut creating a supportive environment for risk assets. However, lingering uncertainties around inflation and labor market data posed potential headwinds.

The cases of AguilaTrades and other high-profile traders underscore the dual-edged nature of leveraged positions in crypto markets. While skilled execution can lead to outsized gains, as seen with 0x51d9’s short trade, the same tools amplify risks when market conditions shift unexpectedly. The recent activity of Bitcoin whales highlights the ongoing tug-of-war between bullish accumulation and selling pressure, with institutional flows and macroeconomic factors playing pivotal roles in shaping the market’s trajectoryBitcoin Whale Resumes Selling as Price Stalls at $116K^[1]Bitcoin Holds $115K Support, Traders Eye Critical Weekly Close Ahead of Fed Decision^[5].