According to data provided by analytics platform Lookonchain, a Bitcoin whale recently opened a short position of $332 million in Bitcoin with an entry price of $84,040. 

The position was opened with 40X leverage, which means that the trader is borrowing 40 times the initial capital. 

Bitcoin is currently changing hands at $83,945, according to CoinGecko data. The cryptocurrency is down 2.3% over the past week. 

The massive position will get liquidated if the price of the leading cryptocurrency ends up spiking to the $85,000 level. 

The trader in question previously managed to rake in a whopping $16.39 million within a single month on popular decentralized perpetual trading platform Hyperliquid. Notably, all of his eight trades were profitable across two wallets. 

Some X commentators are now predicting that the trader will inevitably get liquidated given how precarious his position is.

“These types of guys will lose it all,” one social media user said. 

The 40x leverage dramatically increases the risk of liquidation. It would take a mere 2.5% move to wipe out his entire position.

According to data provided by CoinGlass, a total of $94 million worth of crypto has been liquidated over the past 24 hours, with shorts making up the majority of the sum ($49 million). The largest single liquidation took place on Binance ($582,130 with the BTC/USDT pair). Overall, more than 65,000 traders have been liquidated over the aforementioned period of time. The Binance exchange accounts for 38.79% of the total liquidations.