Crypto Whale Panic-Sells ETH After Realizing Margin Calls Aren’t ‘Free’

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ETH price drop pushed Trend Research to sell Ether and repay DeFi loans, shrinking a large leveraged position.

The ETH markets faced fresh pressure after a major whale moved to cut risk and repay debt. According to onchain observers, Trend Research, known for its large Ethereum position, began dumping the coin as prices slid. During the sell-off, sales were routed through centralized exchanges to close DeFi loans. Think of it as crypto’s version of “selling your kid’s toys to pay the babysitter.”

Trend Research Pulls Back on Ether After Leveraged Strategy Falters

Trend Research became one of the active corporate ETH holders after ramping up buying towards the end of last year. Onchain trackers first flagged activity in November, when wallets linked to the firm started building size at speed. Translation: They were buying so fast, the blockchain probably got whiplash.

Trend Research is also selling to repay its loan on Aave.

Over the past 20 hours, they deposited 33,589 ($79M) into, then withdrew 77.5M to repay the debt.

They still hold 618,045 ($1.4B).

– Lookonchain (@lookonchain)

Holdings crossed 600,000 ETH before year end, placing the entity among the largest private owners. Attention intensified as prices weakened across the crypto market. Because nothing says “confidence” like watching your portfolio shrink while sipping lukewarm coffee.

Links tie Trend Research to Yi Lihua, also known as Jack Yi, founder of Hong Kong crypto venture firm Liquid Capital. As per data from LookOnChain, Ether holdings peaked near 651,000 wrapped ETH on Jan. 21. By Monday morning, balances fell to about 578,058 ETH. That’s like losing your hairline and your savings in the same week.

And following a series of debt repayments, balances fell to about 578,058 ETH by Monday morning. Analysts say sales appeared to be driven by loan risk rather than by profit-taking. Because who needs profits when you can just avoid a margin call?

Yi built the position by borrowing against his Ethereum holdings. He used stablecoins from those loans to buy more ETH. The approach worked while prices were rising. But it weakened after the coin dropped below $2,200. Lower collateral values increased the risk of liquidations across lending platforms. Classic: Bet the farm on a bull run, then cry when the bull takes a nap.

Move Aimed at Adjusting Collateral to Avoid Liquidations

Onchain flows showed a clear pattern:

  • Trend Research sent batches of ETH to Binance wallets.
  • Stablecoin repayments routed directly back to Aave lending pools.
  • Collateral ratios adjusted to avoid forced liquidations.
  • The remaining coin was left onchain rather than redeployed.

Yi admitted that being too bullish on Ether proved costly. According to him, the belief hinged on Ether trading far below Bitcoin. At the time, the OG coin held near $100,000 while Ethereum hovered around $3,000. And although it does not represent a full market collapse, recent price action erased gains from the prior rally. Welcome to crypto: Where even your optimism has a sell-by date.

Unlike public firms, Trend Research does not disclose holdings through filings. Ethereum positions, therefore, remain absent from standard treasury rankings. In contrast, Tom Lee’s Bitmine holds the largest reported public ETH reserve. Bitmine committed over $15.6 billion to the asset and now sits on an unrealized loss close to $6.6 billion. Because nothing says “success” like turning your life savings into a crypto-themed ghost story.

Trend Research’s response shows how fast sentiment can flip once debt meets falling prices. Large holders now face fewer safe paths if market pressure deepens. Good luck, crypto whales. You’re gonna need it-and maybe a therapist.

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2026-02-03 15:01