Trend Research Liquidates Massive ETH Long Position with $869 Million Loss
On February 11, 2026, on-chain analytics provided by Arkham Intelligence confirmed that Trend Research, the prominent trading firm led by Liquid Capital founder Jack Yi, has officially completed the liquidation of its entire ETH (ETH) position. This exit marks the conclusion of what was once widely regarded as the largest private ETH long in Asia, which at its peak reached a staggering valuation of 2.1 billion dollars. The final statistics reveal a devastating realized loss of 869 million dollars for this specific trading round, as the firm unwound its holdings during a period of intense market stress. According to blockchain data, Trend Research’s strategy involved building a high-leverage position by depositing ETH as collateral on the Aave lending protocol to borrow stablecoins, which were then recycled into further ETH purchases. As the price of ETH drifted toward the 1,750-dollar level earlier this month, the firm was forced to move its remaining 651,757 ETH to Binance to repay its massive debts and avoid catastrophic on-chain liquidations.
The Contrast of Bullish Sentiment and the Reality of Forced Deleveraging
The timing of the final exit has sparked significant debate within the crypto community, particularly as Jack Yi had publicly reiterated his long-term bullish outlook just days before the final liquidation. In social media posts published as late as February 7, Yi expressed confidence that ETH would eventually surpass 10,000 dollars and BTC would exceed 200,000 dollars, characterizing the firm’s recent tradeing as “partial adjustments to manage risk.” However, the subsequent total emptying of the firm’s on-chain accounts suggests that the “adjustments” were actually a forced retreat necessitated by the shrinking collateral ratios of their leveraged bets. While analysts estimate that Trend Research had previously banked roughly 315 million dollars in profits during the 2024–2025 rally, this single failed leveraged round has not only erased those gains but left the firm with a net deficit of hundreds of millions of dollars. This event serves as a stark reminder of how rapidly institutional-scale leverage can turn into a liability when market cycles move against high-conviction traders.
Market Sentiment and the Potential for an Institutional Capitulation Bottom
Following the completion of Trend Research’s trade-off, ETH’s on-chain volume briefly hit record highs as the market absorbed the massive supply of 1.74 billion dollars in liquidated tokens. Some market strategists view this large-scale exit as a “textbook capitulation event,” signaling that the most distressed tradeers have finally left the building. Despite the heavy losses incurred by Trend Research, broader data from CryptoQuant indicates that long-term “accumulating addresses”—wallets with no history of outflows—currently hold 27 million ETH, suggesting that while leveraged traders are being flushed out, deep-pocketed spot purchaviewrs continue to increase their exposure. The exit of Asia’s largest long position removes a significant “overhang” of potential tradeing pressure that had been weighing on ETH’s price for weeks. As the dust settles on this 869-million-dollar loss, the industry is left to ponder whether this dramatic institutional withdrawal marks the definitive floor for ETH in 2026 or simply the first in a series of deleveraging events as the global “Trump Trade” continues to unwind
