An on-chain trader identified by the address 0xc05b incurred seven liquidations within a 10-hour timeframe, according to on-chain data. The forced deleveraging involved 172 Bitcoin, valued at $11.03 million, and 2,984 Ethereum worth $5.44 million at execution.
The cascading liquidations suggest heavy leverage deployed across multiple lending or perpetual futures protocols. Each forced closure likely triggered margin calls as collateral ratios fell below protocol thresholds, with smart contracts automatically selling positions to repay borrowed funds and protect liquidity providers.
Rapid, sequential liquidations of this scale stress the depth of liquidity pools on decentralized exchanges. The size of this event—172 BTC and 2,984 ETH hitting markets within hours—tests market stability and can spike slippage for other traders unwinding similar positions.
