Around January 30, in the UTC+8 time zone, BTC and ETH experienced a sharp decline in a short period, repeatedly breaking through key price levels in the contract market, triggering a concentrated deleveraging across the entire market. On-chain and exchange data monitoring showed that only two large accounts were liquidated for a total of approximately $146 million within 24 hours, accounting for about 8.4% of the total liquidation amount that day, exposing the concentration and vulnerability of top leveraged funds. This article delves into the liquidation process of these two whale accounts, analyzing how high-leverage structures were sequentially detonated during the price crash, and assessing the subsequent volatility risks and the remaining leverage hazards.

Price Crash Ignites Deleveraging: Chain Liquidation in Contracts

● Vulnerability of Leverage Exposed: BTC and ETH experienced a brief sharp drop around January 30, with significant declines and weak rebounds at multiple time intervals, leading to a rapid erosion of long margin in the contract market, triggering automatic reduction and forced liquidation processes. For accounts using high leverage with margin utilization rates nearing their limits, each downward price spike accelerated the depletion of margin, turning what was originally a manageable drawdown into a systemic liquidation within minutes.

● Concentration Amplifies Impact: According to monitoring data from Ai Yi, on that day, only two large accounts contributed approximately $146 million to the total liquidation in the market, accounting for about 8.4% of the total liquidation amount within 24 hours. Such a high proportion indicates that top funds are highly concentrated in the direction of high-leverage long positions; once the price deviates from their entry range, the liquidation of a single account can significantly alter the liquidation landscape of the entire market, becoming a key force dragging down prices.

● Formation of Negative Feedback Loop: During the price crash, automatic liquidation engines were triggered intensively across multiple contract platforms, with a massive influx of market orders for liquidation further driving down the buy orders. The continued price decline led more high-leverage longs into the liquidation zone, creating a spiral negative cycle of "price drop—insufficient margin—passive liquidation—price drop again," amplifying the originally macro and sentiment-driven downward wave.

Large Account Liquidation Scene: $146 Million Liquidation Storm

● Liquidation Hotspot Points to BTC/ETH Longs: Monitoring data indicates that these two large accounts were liquidated for a total of approximately $146 million within 24 hours, with positions primarily concentrated in high-leverage long positions in BTC and ETH. In other words, they failed to timely reduce leverage or hedge risks at critical points of trend reversal and amplified volatility, instead becoming one of the most severely liquidated sources of funds in the contract market as mainstream asset prices were sold off.

● "BTC OG Insider Whale" Deeply Trapped: According to on-chain monitoring data, the account known as the "BTC OG Insider Whale" had previously held a large leveraged long position, and after this round of plummet, the unrealized loss further expanded to approximately $103 million. This account did not completely reduce its position but continued to bear a massive unrealized loss under high leverage exposure, effectively being passively trapped during the price turmoil, with any subsequent downward volatility potentially triggering a new round of forced liquidation risks.

● High Volatility Spillover from Top Accounts: For large accounts of this scale, each significant increase, decrease, or liquidation of positions transmits a notable impact to the market in a short time. The extreme fluctuations in profits and losses not only alter their own financial status but also impact the order book through massive trades, creating an amplification effect on short-term price movements, making the volatility faced by ordinary leveraged traders far exceed the levels that should be dictated by spot supply and demand.

Ma Ji Da Ge's 25x Liquidation and Re-entry

● 25x High Leverage Exit: According to Onchain Lens monitoring, the well-known on-chain address "Ma Ji Da Ge" previously opened a 25x leveraged ETH long on the contract platform, which was completely liquidated during the price crash, resulting in a single loss exceeding $25.88 million. Such high leverage means that even a moderate price correction can quickly evaporate margin, making liquidation almost a probability event, and it becomes even harder to exit unscathed in extreme market conditions.

● Suspected Re-entry After Liquidation: After the liquidation occurred, on-chain tracking showed that this address seemingly reopened a high-leverage long position, continuing to bet on a price rebound in an increasingly volatile environment. This "liquidated and then re-entered" operational path reflects its extremely high risk appetite and strong speculative mentality, relying more on directional bets in short-term volatility rather than on institutional strategies focused on risk control and diversified exposure.

● Repeated Liquidations Create Systemic Pressure: For a single account, continuous liquidations and re-entries will constantly amplify the volatility of the capital curve; for the overall market, this high-leverage, frequent increase behavior often leads to repeated passive liquidations in extreme conditions. Each passive liquidation means throwing a massive market order back into the market, creating waves of price shocks and pushing the contract market into a more intense negative feedback loop.

Liquidation Hot Zones and Liquidity Shock: How Whales Step on the Order Book

● Highly Concentrated Liquidation Price Bands: On mainstream contract platforms, leveraged traders often build positions around similar technical supports and psychological levels, leading to a high concentration of liquidation price ranges. Once spot and index prices reach these ranges, the liquidation engines will trigger a large number of accounts' forced liquidations in a short time, forming what is known as a "liquidation band," with cascading effects causing exceptionally volatile price movements in this area.

● Large Liquidations Smash the Order Book: For whale accounts, when their leveraged positions worth tens of millions or even hundreds of millions are forcibly liquidated, the system often sells the underlying assets in batches at market price or close to market price. These massive orders will quickly consume the depth of buy orders at limited liquidity levels, causing significant slippage and instantaneous price gaps, with even "K-line gaps" appearing during certain time periods.

● Chain Liquidations Drag Down Small and Medium Positions: When top leveraged long positions are concentrated in the same price band for liquidation, the slippage in the order book is significantly amplified, causing prices to drop sharply in a short time. Initially, the liquidation zone of the whales is breached, but as prices continue to decline, small and medium leveraged positions that were still on the safe edge can also be swept into the liquidation zone, triggering more automatic liquidations. Thus, the liquidation of whales not only reflects a failure in their own risk management but also becomes a catalyst for dragging down a broader range of leveraged funds.

Macro and On-chain Shadows: External Volatility Overlaid with Internal Leverage

● Strong Dollar Pressures Risk Assets: According to foreign exchange market data, around January 30, the USD/JPY exchange rate rose by over 0.5% in a single day, reaching 153.84, reflecting a phase of strengthening safe-haven dollars. Against the backdrop of macro funds shifting preference back to the dollar, risk assets including BTC and ETH generally face valuation correction pressures, with prices becoming significantly more sensitive to negative sentiment and selling pressure, providing an external trigger for this round of deleveraging.

● On-chain Perspective Highlights High Leverage Risks: Multiple on-chain analysis viewpoints indicate that the large leveraged long positions held by top whales have seen unrealized losses sharply expand during the downturn, with market vigilance towards high leverage risks continuing to rise. Particularly, the fact that accounts like the "BTC OG Insider Whale" are passively bearing unrealized losses exceeding $100 million has made investors more concerned about the systemic risks of leverage concentrated in a few whales; if these positions are further liquidated, prices may still face a secondary shock.

● CEX Contract Markets Become the Main Battlefield for Liquidation: Under the dual effects of macro disturbances and high leverage stacking, the contract markets of centralized exchanges have become the first and most intense scenes of volatility. Compared to on-chain spot or low-leverage products, CEX contracts have higher leverage multiples and tighter margin mechanisms; once prices undergo rapid unilateral changes, the forced liquidation engines will be activated first, thereby "amplifying" external macro changes into internal price avalanches.

Deleveraging Not Yet Complete: The Fuse for the Next Round of Tremors

Current liquidations are primarily concentrated in extremely high leverage and large accounts; from the liquidation of "Ma Ji Da Ge's" 25x ETH long to the "BTC OG Insider Whale's" unrealized loss exceeding $103 million, it is evident that the most aggressive batch of leveraged funds is undergoing a high-intensity clearing. However, from the still substantial open contracts in the market and the state of some whales that have not fully cut losses, the existing leverage has not been completely cleaned out, and there remains a risk of further amplified volatility in subsequent market movements.

High leverage, highly concentrated positions, and uneven liquidity distribution across different platforms make the market extremely sensitive to any new external shocks. Whether it is the further strengthening of the dollar on a macro level or sudden emotional shifts within the industry, as long as they resonate with key price levels and liquidation bands, they could ignite the next round of intense volatility. It can be expected that under such a structure, those who still maintain extreme leverage and concentrate bets in a single direction will continue to be the primary targets for liquidation in the future.

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