Trend Research Unwinds $1B ETH Leverage Bet; 215K+ ETH Hits Binance
Hong Kong fund Trend Research has dumped over 215,000 ETH to repay Aave loans, realizing massive losses as liquidation risks loom near $1,600.
BERLIN. The on-chain capitulation of Hong Kong-based fund Trend Research accelerated Friday, with the entity dumping over 215,000 ETH (approx. $412M) onto Binance since Feb. 1 to stave off liquidation. The aggressive selling has pinned Ethereum (ETH) near $1,920, capping any recovery momentum as the fund dismantles a massive "looping" strategy that has gone deeply underwater.
The $860M Unrealized Loss
Led by founder Jack Yi, Trend Research spent late 2025 accumulating a peak position of roughly 651,000 ETH. The strategy involved depositing ETH into Aave to borrow stablecoins, which were then used to buy more ETH, a leverage loop that works until prices drop. With ETH sliding 30% this week, the fund is now trapped.
On-chain data from Arkham Intelligence confirms the entity has realized hundreds of millions in losses to repay Aave debt. The fund’s remaining stack, estimated between 247,000 and 460,000 ETH, still poses a systemic risk. Analysts peg the fund’s unrealized losses at nearly $862 million compared to January valuations.
"As the person currently under the greatest pressure across the entire network, I first have to admit this: after fully exiting at the top, turning bullish on ETH too early was indeed a mistake." Jack Yi (via X)
The Liquidation Cliff
The market’s anxiety isn’t just about what has been sold, but what remains. Liquidation data suggests Trend Research’s safety buffer is thinning. Key liquidation bands for their remaining Aave positions sit between $1,574 and $1,681. If ETH wicks into this zone, smart contracts could trigger an automated "fire sale" of the remaining collateral, potentially flashing price down further in a cascading event similar to the CRV liquidation scares of previous cycles.
For now, the fund appears to be manually unwinding, sending batches of 8,000 to 50,000 ETH to Binance to sell into liquidity rather than waiting for the protocol to liquidate them. This controlled demolition creates a ceiling for ETH price action; every bounce is being sold.
