Licheng's Major Unwind: $100K+ in Losses Across BTC and ETH Positions

Prominent crypto trader Licheng faced a brutal liquidation cascade in mid-December, with forced position closures wiping out over $100,000 in value across multiple holdings. According to Hyperbot’s on-chain tracking data and PANews reporting, the trader’s account experienced a systematic deleveraging event that exposed significant risk exposure during volatile market conditions.

Simultaneous Position Closures Trigger Cascading Losses

Nine hours before mid-day, Licheng fully unwound his bullish bets on BTC and the HYPE token, crystallizing a combined loss of $70,600. The closure of these core positions signaled the beginning of broader portfolio stress, with the trader facing mounting liquidation pressure across his largest holding—Ethereum.

The ETH portfolio deteriorated rapidly between 1:00 AM and 4:30 AM that same day, with 17 separate liquidation events dismantling 775 ETH of long exposure. This wave of forced liquidations resulted in a $37,200 realized loss, highlighting the speed at which underwater positions can cascade into forced sales during market downturns.

Defensive Repositioning Amid Account Drawdown

Rather than completely capitulating, Licheng deployed fresh capital in an attempt to stabilize his holdings. The trader injected 149,900 USDC into the account and added 350 ETH to his long positions, signaling continued conviction in Ethereum despite the liquidation damage.

However, these defensive measures only partially offset the damage. His ETH position ultimately stood at 5,000 ETH—valued at $14.14 million at the time—but the account remained deeply underwater with an unrealized loss of $524,000. This substantial floating loss demonstrated that even after adding capital and averaging down, Licheng’s risk posture remained precarious as market volatility continued to pressure leveraged positions across the board.