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Binance Smart Money Account Hanmancheol Suffers $1.38 Million Loss Shorting COAI

Hanmancheol, a Binance smart money account, faced a major $1.378 million loss from shorting COAI, incurring $774,000 in funding fees and liquidation due to price movement.

Summary

Hanmancheol, a Binance smart money account, reported a $1.378 million loss after shorting COAI, paying $774,000 in funding fees. The trader's positions were opened at an average price of $10.79 and liquidated at $18.97. Despite six profitable trades earlier in the month, this significant loss overshadowed all prior gains.

Terms & Concepts
  • Funding Fees: Periodic payments made between long and short traders in perpetual futures to keep contract prices aligned with the spot market.
  • Liquidation Price: The predetermined price at which a leveraged position is automatically closed to prevent further loss when the market moves against the trader.
  • On-chain Analysis: The study of blockchain data to track transactions, wallets, and trading behaviors, providing insights into market movements and trader strategies.