Data: High-leverage rollover traders were hit hard by a 4% rebound, with one-third of $332 million in short positions liquidated

According to Yu Jin's observation, a market rebound of about 4% at 3 AM led to the liquidation of one-third of the short position of the rolling trader 0xD83…Fd7, amounting to approximately $332 million, with unrealized profits plummeting from $24 million to $4 million.

High-leverage rolling strategies have very low tolerance for errors; even a slight price reversal can result in the loss of all profits or principal. Currently, this address has replenished part of the short position and still holds approximately $266 million in short positions.