Ethereum Whale Wrecked: $106M Liquidated on Sky During Market Meltdown

In one of the largest single liquidation events of the year, an Ethereum whale was wiped out to the tune of $106 million on Sky Exchange, as a brutal crypto sell-off sent shockwaves through the market.

The liquidation occurred as Ethereum’s price plunged sharply, breaching key support levels amid a broader market meltdown that saw over $1 billion in total crypto positions erased in under 24 hours. Blockchain analytics show that the whale’s highly leveraged long position was auto-liquidated as ETH dipped below the critical threshold.

According to on-chain data, the whale had taken on significant leverage via Sky Exchange’s derivatives platform, with the liquidation impacting hundreds of thousands of ETH and setting off a chain reaction of forced sells that added further pressure to already rattled markets.

“That kind of size getting flushed is never clean,” noted one analyst. “It deepens the volatility and sends shockwaves across other open interest positions — it’s a cascade effect.”

The identity of the wallet holder remains unknown, but the address had been accumulating ETH for months, making this liquidation not just financially painful, but potentially the end of a long-held position.

The incident highlights ongoing concerns about overleveraging and liquidity risk in crypto derivatives markets — particularly when large positions are concentrated on smaller or mid-tier exchanges like Sky.

As Ethereum hovers near local lows and sentiment sours, traders are reminded once again of crypto’s unforgiving nature — especially when size meets volatility.

For now, the whale is wrecked, the market is bruised, and Sky Exchange is in the spotlight.