One of crypto’s biggest players just got absolutely wrecked. In a spectacular display of market brutality, an Ethereum whale watched helplessly as $106 million worth of their position got liquidated on Sky, the platform formerly known as MakerDAO. Talk about a really, really bad day at the office.
The carnage unfolded on April 6, 2025, when Ethereum’s price took a nasty 14% nosedive. The whale, who had locked up a massive 67,570 ETH as collateral, learned the hard way that leverage is a double-edged sword. When their collateral ratio slipped to 144% – below Sky’s required 150% threshold – the automated liquidation machine kicked into high gear. No mercy, no appeals, just cold, hard code doing its thing.
When markets tank and liquidation looms, code shows no sympathy. One whale’s $106M nightmare proved that harsh reality.
The broader crypto market wasn’t exactly having a party either. Bitcoin and XRP joined the downward spiral, as ETH plummeted from above $1,800 to around $1,500. Panic selling swept through the market like wildfire, pushing Ethereum’s trading volume up by 29%. The RSI screamed “oversold” at 38, but that didn’t stop the bleeding. The technical analysis showed clear bearish crossover signals indicating further downside potential.
This wasn’t just another day of crypto volatility – it was one for the history books. The $106 million liquidation ranks among the largest single-event liquidations in Ethereum’s history. Sky’s automated systems did exactly what they were designed to do: protect the platform by forcibly selling off collateral to cover borrowed amounts. Whatever was left after covering the debt went back to the whale. Small consolation.
The event sent shockwaves through the DeFi ecosystem, highlighting just how quickly things can go south when whales play with leverage. The automated nature of these platforms means there’s no room for negotiation when things go wrong. No phone calls to your broker, no pleading for more time. Just pure, unfiltered market dynamics at work.
When prices spiral and collateral ratios breach thresholds, the system doesn’t care if you’re a whale or a minnow – you’re getting liquidated either way.
