From a floating loss of 21 million to a profit of 620,000, how did this ZEC short whale turn things around?

A whale address labeled as “ZEC’s largest short” partially took profit on its MON short position on January 12, reducing approximately 44.75 million MON shorts and cashing out nearly $1.47 million. This is not just a routine profit-taking but another precise move by a trader who experienced significant unrealized losses and ultimately turned the situation around.

Details of the Short Whale’s Profit-Taking

According to the latest news, the specific details of this whale’s profit-taking operation are as follows:

This 42.21% return may not seem particularly high, but for derivatives trading, stable gains are often more important than chasing huge profits. More importantly, this whale did not close all positions at once but chose to take partial profits, indicating it still has a view on MON’s future trend.

From $21 million unrealized loss to reversal

The true value of this address is not just the 42% gain on MON but its trading resilience. According to the latest news, this whale started building a large short position at around $184 ZEC, during which it faced an unrealized loss of $21 million. How terrifying is this figure? To put it another way, it means its position was halved at one point.

But this trader did not get liquidated or give up under pressure; instead, it continued holding and eventually turned losses into profits. Such mental toughness and risk management skills are quite rare in the crypto market.

The battle between shorts and longs in the market

Interestingly, according to the latest news, at the same time, another whale was taking the opposite position on ZEC. This trader was previously noted for “selling 255 BTC to short,” but now has opened a long position with over 10x leverage, with total profits reaching $14.69 million.

This reflects a phenomenon in the current crypto market:

• Short whales continue to be bearish on assets like MON and ETH
• Long whales are bullish on ZEC, BTC, ETH, etc.
• Both sides are leveraging to amplify their judgments

ZEC itself is also quite interesting. According to the latest news, ZEC surged 11% on January 9 but also faces many adverse factors: development activity at its lowest since 2021, and the core development team of Electric Coin Company resigning collectively. Against this backdrop, the long whales are still increasing their positions, indicating they are not focusing solely on current fundamentals but on technicals or market sentiment.

The trading philosophy behind profit-taking

The reason this short whale was able to recover from a $21 million unrealized loss mainly boils down to:

• Not chasing quick,暴利: a 42% return is not astonishing but stable and replicable
• Partial profit-taking, maintaining positions: still holding $4.41 million worth of MON shorts, showing confidence in the trend
• Strict risk management: even with an unrealized loss of $21 million, no liquidation occurred, indicating cautious initial position sizing
• Patience: shorting ZEC from $184 and eventually profiting requires long-term holding discipline

Summary

This profit-taking on MON by the ZEC’s largest short position is essentially a routine move by an experienced trader managing large positions. The $620,000 profit may seem significant, but for a position that once faced a $21 million unrealized loss, it more reflects risk management—locking in profits timely and leaving room for potential future volatility.

The key point is that this whale still holds $4.41 million worth of MON shorts, indicating continued bearish outlook on MON. Meanwhile, the fierce battle between shorts and longs persists, and the price movements of assets like ZEC and MON will continue to be influenced by these large positions. For ordinary traders, observing the actions of such whales can help understand the real forces at play in the market.