$106M ETH Dump: Ethereum Whale Liquidated After Market Meltdown

A whale liquidated $106 million worth of Ethereum on the Sky lending protocol, formerly Maker, following a severe crypto market downturn. 

The whale, who was holding a leveraged position, lost 67,570 ETH—then valued at $106 million—when Ethereum’s price dropped, triggering an auto-liquidation of their collateralized debt position (CDP).

Also read: Biggest Crash Since 2020? US Stock Market Tanks as Crypto Holds

Figures from Lookonchain shared on X described the event, showing the whale’s debt of 35,804 DAI paid off through the sale of their ETH.

Another liquidation of 32 ETH followed minutes later, reducing the whale’s remaining collateral to 12,840 ETH. This loss is evidence of the risks of leverage in decentralized finance, especially during volatile market conditions.

Sky has mandated a minimum collateral-to-debt ratio of 150%. The whale had previously deposited 82,876 ETH, bringing their total collateral to 100,000 ETH with a 180.79% ratio. 

However, the sudden price drop in Ethereum cleared this margin, forcing the protocol to liquidate assets to maintain stability. 

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The transaction ranks among the largest single liquidations of 2025, with traders describing it as “market drama at its finest.”

Trump’s Tariff Announcements Trigger General Crash

The Ethereum liquidation occurred against the backdrop of a general crypto market crash, driven by economic uncertainty following President Donald Trump’s tariff announcement on April 2, 2025.

Also read: Crypto Chaos: US Tariff Surge Sends Bitcoin and Ethereum Into Tailspin

Trump referred to the 10% bottom tariff on all trading partners, with above-the-line rates on countries like China, as “Liberation Day” to take effect on April 9.

The tariffs are intended to reshape global trade, but they have unsettled financial markets. Concerns over a potential trade war, alongside tariffs on semiconductors and pharmaceuticals, triggered a risk asset sell-off, including cryptocurrencies.

Ethereum experienced a 14% price drop on April 6, falling below the whale’s liquidation threshold. The total crypto market capitalization, already down 8% in February, faced renewed pressure, with liquidations piling up across platforms.

Crypto market heat map (Source: TradingView)

ChainCatcher analysts noted that capital rebalancing at quarter-ends and future releases of economic data added fuel to the fall, leaving leveraged traders vulnerable.

Ethereum on the Brink: Is this a Fallout and Warning?

The whale’s $106 million loss could further fuel selling pressure on Ethereum, which could in turn deepen the market. 

Ethereum price chart (Source: CoinMarketCap)

This event shows the dual nature of DeFi: while platforms like Sky offer lucrative opportunities, they also expose users to massive risks during crashes.

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As markets continue to adjust to Trump’s tariff rollout, analysts warn traders of potential continued volatility. The liquidation serves as a cautionary sign for investors, explaining the need for careful leverage management and diversified portfolios.

As Ethereum and other cryptocurrencies remain under pressure, the repercussions of this global market decline may continue, challenging both institutional and retail traders.