The Red Hot market has forced whales to Cut Losses over 11,000 $ETH to save the loan on Spark!

In light of the sharp decline in ETH prices over the past week, a big player using significant leverage on the Spark lending protocol has been compelled to take urgent action to protect their assets from liquidation.

🔷 To alleviate the debt pressure, in the past 2 days, this whale wallet has taken decisive steps:

- Transferred a total of 11,190 ETH to the OKX exchange to sell, bringing in about 32.83 million USD.

- Immediately afterward, this whale withdrew 26.55 million USDT from the exchange to pay down the loan on Spark.

🔶 After accepting to Cut losses to ease the burden, this whale's position has become safer:

- Liquidation Price: Has been pulled down to $2,268.

- Currently, the liquidation price is lower than the market price by about $667, creating a sufficiently safe buffer against short-term volatility.

- This wallet is still collateralizing a large amount of assets, totaling 37,400 ETH valued at approximately 110 million USD to maintain a loan of 62.57 million USDT.

This is a typical lesson in risk management in the Crypto market: When the market moves against predicted trends, decisively reducing position size is a vital action to protect the remaining capital.

This article is for reference only and is not investment advice. Please read and consider carefully before making any decisions.