Houthi Attack on Al-Hudaydah, Oil Short Sellers Unable to Escape, $13.2 Million Liquidation

August 11th, according to TradingBeats (formerly Hyperinsight) monitoring. Early this morning, the 0x000-starting whale's 152,500 BRENTOIL short position was forcibly liquidated by the market, with a liquidation value of approximately $13.209 million, a weighted average settlement price of around $86.61, marking the largest single liquidation observed across the entire network today.

This whale did not fail to set a stop-loss in advance but was unable to exit quickly enough as the oil price surged.

Prior to the liquidation, the address actually held about 179,300 BRENTOIL shorts with a comprehensive entry price of about $80.58. As Brent crude oil continued to rise, the whale initiated a "reduce-only" TWAP liquidation order early in the morning, intending to actively close 44,000 short positions.

However, before the forced liquidation occurred, the TWAP only managed to execute 26,800 positions, approximately $2.315 million, equivalent to actively closing only about 15% of the original position and stopping out approximately $154,000. The remaining approximately 85% of the 152,500 short positions had not been able to exit and were forcibly liquidated in one go as Brent oil approached $86.61.

Based on the $80.58 comprehensive cost, at the time of liquidation, Brent oil had risen about 7.5% from the entry price. The combination of the proactive stop-loss and subsequent forced liquidation resulted in a total loss of approximately $1.073 million for this address.

This liquidation was not the first time it had suffered similar losses on crude oil. On August 4th, the address's BRENTOIL and CL short positions were forcibly liquidated consecutively, with a total liquidation value of approximately $3.823 million and a realized loss of about $116,000. Including this time and other trades during the period, it has accumulated a net loss of approximately $1.162 million on oil contracts since August.

This liquidation was triggered by renewed uncertainties about the reopening prospects of the Strait of Hormuz. Iran insists that the U.S. meet conditions, including war reparations, before restoring navigation. Trump has rejected the related demands, prompting the market to reassess the risk of supply disruption. Brent crude oil surged about 5% to $87.72.

At the time of writing, BRENTOIL is currently trading at around $86.82, up approximately 3.7% in the last 24 hours, with a trading volume of about $171 million and an open interest value of about $223 million; the hourly funding rate has dropped to about -0.0099%.

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