WBTC Whale Near Liquidation After Building $2.63B WBTC/ETH Position; Sells ETH to Repay USDT on Aave with Health Factor at 1.05

According to EmberCN monitoring, a crypto whale that amassed a position valued at approximately $2.63 billion in WBTC and ETH via a flash loan three months ago now faces heightened liquidation risk. The liquidity provider indicated proactive steps to mitigate downside exposure as market liquidity shifts.

In a recent move, the entity converted 1,316.8 ETH into approximately 4.017 million USDT, targeting immediate loan repayment. Despite this, outstanding borrowing on Aave remains up to $146 million with a health factor around 1.05, underscoring fragile margin protection.

A further 5% retreat in BTC and ETH could press the position into liquidation territory. The vessel’s cost basis sits at $116,762 for WBTC and $4,415 for ETH, with unrealized losses pegged near $65.49 million, underscoring the risk/reward balance in high-leverage crypto exposures.