Trend Research Suffers $680M Loss as Ethereum Price Plunge Triggers Forced Sales

Trend Research, a Hong Kong trading firm led by Liquid Capital founder Jack Yi, suffered an estimated $680 million loss after its massive leveraged Ethereum (ETH) position collapsed. The firm's $2 billion bet on Ethereum crashed to $1,750, forcing Trend Research to liquidate over 400,000 ether.

The collapse exposed the risks of leveraged DeFi positions when prices move against borrowers. Trend Research had built one of crypto's largest private ether positions by borrowing stablecoins from AAVE against ETH collateral. The strategy worked during rallies but reversed violently when Ethereum fell 30% in one week.

According to blockchain analytics firm Bubble Maps, Trend Research moved 411,075 ETH to Binance since early February to repay Aave debt. As the position peaked at approximately 651,000 ETH in late January, prices hovered near $3,000. When Ethereum dropped to $1,748 on February 4, the firm's collateral value shrank while fixed stablecoin debt remained constant, triggering forced sales.

Trend Research now holds roughly 247,000 ETH according to recent on-chain data, down from its peak holdings that would have ranked it among the largest private ether holders. Founder Jack Yi remains bullish, targeting $10,000 for ether and $200,000 for Bitcoin despite acknowledging he called a market bottom too early.