On June 5, on-chain monitoring platform Onchain Lens reported that a whale address connected to the crypto derivatives exchange BIT has incurred heavy paper losses after Ethereum (ETH) broke below the $1,700 mark. The address had earlier opened a 120,000 ETH long position on BIT’s perpetual contracts with 15⨉ to 20⨉ leverage. Based on a price near $1,700, the position’s notional value is roughly $204 million, yet its unrealized loss has already exceeded $69 million — a drawdown of about 34%. Since the position was built, ETH has weakened markedly and has yet to stage a meaningful recovery, keeping the highly leveraged bet under constant pressure and perilously close to its liquidation threshold.
Beyond the direct erosion from falling prices, the perpetual contract funding rate mechanism is steadily draining the whale’s margin. BIT settles its funding rate every eight hours, and during most periods longs are required to pay shorts. The whale has now paid a cumulative $1.86 million in funding fees, further depleting the available margin. If ETH fails to mount a strong rebound, the position could face forced liquidation, crystallizing the paper loss and potentially incurring additional liquidation penalties. The episode lays bare the severe risks that high leverage poses in a one‑sided market.