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$18.42 Million Short Position on PENGU Faces $10.74 Million Loss

On-chain analyst reports a $13.15 million liquidation of a 3x short position followed by a new 2x short position with an unrealized loss of $100,000.

PENGU

Summary

On July 23, an on-chain analyst disclosed the liquidation of a PENGU 3x short position at a loss of $13.15 million. Subsequently, a new 2x PENGU short position worth $520,000 was opened, currently showing a floating loss of $100,000. The earlier position, totaling $18.42 million, was liquidated as PENGU's price increased from $0.01609 to $0.03879, with a liquidation price of $0.04028.

Terms & Concepts
  • Short Position: A trading strategy that involves selling an asset with the expectation that its price will decline, allowing the trader to repurchase it at a lower price.
  • Leverage: The use of borrowed funds to increase the potential return on investment, which can also amplify potential losses.
  • Liquidation Price: The price at which a leveraged position will be automatically closed by the exchange to prevent further losses.