A major whale lost what may be the biggest bet of all time in the crypto space taking a short position on EOS for $128 million.
12.8 million futures contracts were liquidated earlier this morning as they cut their losses in a trade that may well have been leveraged, meaning the amount lost could in reality be even higher.
The position may have been opened as a hedge against a long position, or it may simply be that a non-believer ended up feeling the burn by losing out on a huge amount of money betting against the cryptocurrency project.
People can short cryptocurrency by purchasing futures contracts and receiving a payout if the value of the currency they're shorting drops. Often the trades are leveraged, meaning they could stand to win 5 - 10 times as much as they wager, like odds in a bookies -meaning they could have lost more than they wagered too!
This is the second time this month a major short contract has been liquidated on OKEX, with a $119 million worth of contracts against Bitcoin liquidated just last week.
There was just a 12.8 million contract liquidation on EOS futures on okex.— lowstrife (@lowstrife) May 11, 2018
I think that is the biggest dollar figure liquidation ever on okex. 128 million dollars. pic.twitter.com/7tpwIpaFMs