Asia’s Largest ETH Long Liquidated; On‑Chain Accumulators Still Buying
Trend Research, led by Jack Yi, has fully exited its Ethereum (ETH) leveraged long positions — once the largest in Asia — according to Arkham on‑chain data. At its peak the firm held roughly $2.1 billion in leveraged ETH longs financed by borrowing stablecoins against ETH collateral. The complete exit, closed on Sunday, realized an estimated $869 million loss after several days of position reductions as Ether fell toward $1,750 and forced deleveraging hit the market. Yi had publicly maintained a bullish long‑term outlook days earlier, forecasting ETH above $10,000 and BTC over $200,000 while noting partial risk adjustments and concerns about liquidity and platform activity. Despite the large institutional unwind, on‑chain metrics show sustained accumulation: CryptoQuant reports 27 million ETH (about 23% of circulating supply) held in “accumulating addresses” — wallets with 100+ ETH and no outflow history or exchange ties — and notes ETH has traded below these addresses’ realized price only twice (a 2025 low and the current downturn starting January 2026). Key takeaways for traders: a major leveraged liquidation increased near‑term selling pressure and volatility (realized loss ≈ $869M), but long‑term on‑chain accumulation suggests underlying demand remains. Monitor exchange flows, open interest on derivatives, large address activity, and ETH price reaction around $1,700–$2,000 for potential short‑term support or further deleveraging.
Neutral
The news is market‑impactful but mixed. The forced liquidation of Trend Research’s ~$2.1B leveraged ETH long and the realized loss (~$869M) clearly increased short‑term selling pressure and volatility — a bearish shock that likely pressured derivatives markets, raised funding rates in the short term, and reduced confidence among leveraged traders. That suggests short‑term downside risk and elevated volatility. However, on‑chain signals point to continued accumulation by large non‑exchange addresses (27M ETH, ~23% of circulating supply) and historical rarity of price falling below these accumulators’ realized cost, implying durable demand and potential long‑term support. The combination mirrors prior episodes where large liquidations caused sharp drawdowns and volatility (e.g., 2022/2023 DeFi & exchange liquidations) but were followed by recovery periods driven by spot accumulation. For traders: expect continued short‑term volatility, watch exchange outflows/inflows, derivatives open interest and funding rates for clues on positioning; long‑term investors may view current levels as accumulation opportunities if on‑chain buying persists. Therefore, overall impact is neutral — bearish for short‑term price action, but constructive for long‑term fundamentals.