Whale's Leveraged LIT Bet Triggers $2.84M Loss

Edgen Crypto

·Jan 15 2026, 04:45

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Key Takeaways

A single large trader's heavily leveraged position on the LIT token has resulted in a significant unrealized loss, creating a major risk for the asset's stability. As the price of LIT dropped below the $2 threshold, this position is now under threat of forced liquidation, which could cascade into a wider market sell-off.

A single whale holds a 3x leveraged long position on the LIT token, a high-risk bet on its price increasing.
The position has an unrealized loss exceeding $2.84 million after LIT's price fell below the key $2 level.
A forced liquidation of this large position could trigger a sudden and sharp price crash for the LIT token.

Whale's 3x Long Position Incurs $2.84M Unrealized Loss

A large crypto holder, or "whale," is facing a substantial financial deficit after making a high-risk bet on the LIT token. According to on-chain analysis, the trader established a 3x leveraged long position, which has now accumulated an unrealized loss of more than $2.84 million. The losses mounted as LIT's price failed to hold its ground, dropping below the critical $2 mark. This unrealized loss represents the current paper value decline of the position; it will become a realized loss if the position is closed or forcefully liquidated at current prices.

Liquidation Threat Looms as LIT Price Stalls Below $2

The primary risk for the LIT market is the potential for a forced liquidation of this whale's position. If LIT's price continues to decline, the platform holding the leveraged position will automatically close it by executing a large market sell order to cover the borrowed funds. Such an event would introduce significant selling pressure, likely overwhelming buy orders and causing a rapid, severe price drop. This situation signals a strong bearish sentiment and serves as a stark warning to other investors of the heightened volatility and downside risk currently associated with the LIT token.