Last night, a slight dip directly triggered a concentrated market liquidation. On-chain data shows that the high-leverage long position of well-known trader Huang Licheng in Ethereum was cleared in the early hours. This is the second time this month that his heavy positions have been liquidated — since the intense volatility on October 11, his total losses have reached $20.62 million.

According to market observations, his position leverage once approached 30x. Under such risky configurations, any technical adjustment could trigger forced liquidation. When a whale falls, it often causes ripples in the market.

This incident has sparked two completely different interpretations:

On one hand, bears believe this exposes the current market fragility. Overall liquidity is still tight, with many speculative positions; any small movement could trigger a chain reaction. Emotionally, the shadow of the sharp decline on October 11 has not yet fully dissipated.

On the other hand, bulls point out that the overall leverage in the network is at a historical low — many speculative positions have been wiped out. Historical experience shows that when most leverage is squeezed out and the market falls into extreme pessimism, the seeds of a rebound are often already budding. Fundamentally, Ethereum’s core narrative (technological evolution, ecosystem expansion) has never changed.

Regardless of which judgment is correct, this case reminds us of a simple yet profound truth: in the crypto market, risk management is always the primary rule of survival. Respect for market volatility and acting within one’s capacity are conclusions drawn by those who have experienced cycles.