According to on-chain data analyst Ember, AguilaTrades is executing a forced liquidation of its 20x leveraged BTC long position, incurring a substantial loss of approximately $11.72 million. The liquidation process commenced at 4:30 AM and has since decreased the position size to $121 million. To mitigate market impact, AguilaTrades is employing a Time-Weighted Average Price (TWAP) strategy to unwind the remaining exposure. This methodical approach aims to complete the position closure within the next seven hours, reflecting a calculated risk management tactic amidst volatile market conditions. The unfolding event underscores the heightened risks associated with high leverage in cryptocurrency trading and highlights the importance of strategic liquidation techniques to preserve capital.
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