Continuous losses! The high-frequency short-selling pioneer fails on BTC and ETH

The “High-Frequency Short Selling Pioneer” (0x3bcae), known for making profits, has recently had a tough time. On January 23, this address closed out 68.95 BTC short positions, incurring a loss of $14,000. Even more painfully, the day before, it lost $45,000 on ETH. In just two days, this typically risk-controlled trading address experienced consecutive losses, and the underlying reasons are worth a deep dive.

Why the Short Selling Pioneer Is Losing Money

Market rebound hits short positions in the face

Looking at BTC’s recent trend, it has fallen 5.79% over the past 7 days, but this figure can be misleading. The loss when the short positions were closed on January 23 indicates that its short positions were established at a lower price level. Currently, BTC is around $89,803.16, which is unfavorable for short positions.

The key point is that losses on short positions usually mean the market has rebounded. Both BTC and ETH have shown unexpectedly strong resilience recently. The decision to close positions by this address was likely driven by forced stop-losses or proactive risk avoidance.

Trading characteristics determine risk exposure

According to information, this address employs a high-frequency multi-asset strategy, favoring overnight holdings. This strategy is highly effective in stable markets but can easily get caught in volatility. The recent consecutive losses precisely reflect the vulnerability of this strategy in unfavorable market conditions.

Historical performance remains impressive

Although there have been recent losses, the full-cycle performance of this address remains commendable. According to reports, its total profit over the entire cycle has reached $12,168,300. This means that even with the recent two closures losing a total of $59,000, it is just a small fraction of this address’s historical gains.

From this perspective, the short-term losses are more a reflection of market rhythm changes rather than a flaw in the trading strategy itself.

Market implications

The deeper significance of this event is that even experienced traders with strict risk controls can face losses. What does this tell us?

First, market uncertainty is rising. BTC’s performance around $89,800 is testing the psychological defenses of short sellers.

Second, the limitations of single-strategy approaches are becoming evident. High-frequency short-selling strategies work well in certain market environments, but when market sentiment shifts, quick adjustments are necessary.

Finally, the rapid closing of positions by this address may also be a preparation for larger market changes.

Summary

The consecutive losses of the “High-Frequency Short Selling Pioneer” reflect two realities of the current market: first, BTC and ETH’s resilience exceeds some short sellers’ expectations; second, even excellent traders need to stay humble in the face of market dynamics.

This address’s full-cycle profit of over $12 million still shines, but recent losses remind us that there is no forever-correct strategy—only traders who continuously adapt to the market. For ordinary investors, this also serves as an important lesson: during market volatility, flexible adjustments are more important than sticking to a single approach.