Add as a preferred source on GoogleArm-Linked Short Reached $1.84 Million Before Trader Lost $108,800
The trader began building the position Wednesday afternoon, and it was fully liquidated 27 minutes later. The average liquidation price was $202.12, compared with a $190.82 average entry.
A trader's Arm-linked short had grown to about $1.8368 million by Wednesday's U.S. market close before the position was fully liquidated 27 minutes after the first entry, leaving a loss of about $108,800.
Building began at 3:36 p.m. ET Wednesday, Nov. 4 (20:36 UTC). Full liquidation came at 4:03 p.m. ET (21:03 UTC). The average entry price was $190.82, compared with an average liquidation price of $202.12.
The $1.8368 million figure describes the accumulated position size, not the trader's loss. A short is designed to benefit when an asset's price falls. The position's average liquidation price was above its average entry price, an adverse move for the short. Liquidation forcibly closes a leveraged position when margin requirements are not met.
A subsequent Nov. 5 quote for Arm's Hyperliquid contract put it at $188.17, below the trader's average entry price.
Arm's latest reported quarter showed revenue of $1.443 billion, up 27% year over year, while data-center royalty revenue doubled.
Enna Lee
ReporterEnna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to info@tokenpost.com.