Lookonchain noted that some hackers dumped 7,816 ETH (equivalent to 29.14 million USD) at 3,728 USD/ ETH during the price drop, causing an additional loss of about 3.37 million USD; 6 hacker wallets suffered a total loss of more than 13.4 million USD due to buying high and selling low.
The event reflects panic reaction behavior in the cryptocurrency market and losses due to poor risk management. on-chain transaction analysis helps identify the loss mechanism and draw risk management recommendations for investors.
- 7,816 ETH were sold off at $3,728/ ETH, ~$29.14 million.
- This action caused an additional loss of ~$3.37 million; 6 wallets lost >$13.4 million in total.
- Lesson: poor risk management, avoid buying high and selling low, need liquidation and contingency strategy.
Event Summary
Some hackers sold 7,816 ETH during the price drop, doing so at a price of $3,728/ ETH and taking a further loss compared to the previous purchase price.
on-chain data shows that concentrated sell-offs at the time of sharp declines resulted in direct losses and highlighted reactive trading behavior. Wallet aggregation shows a pattern of buying high, selling low, causing cumulative losses.
According to Lookonchain's monitoring, multiple hackers dumped 7,816 ETH ($29.14 million) at $3,728 during the price drop, resulting in an additional loss of about $3.37 million. Six hacker wallets recently lost more than $13.4 million by buying high and selling low.
Lookonchain, on-chain transaction tracking platform
Financial causes and consequences
The main reasons are panic reactions to price fluctuations and lack of risk management strategies, leading to selling off at prices lower than the purchase price.
The result is direct financial losses for the wallets involved, increased liquidation pressure in the market, and a clear risk of not having a loss mitigation plan such as stop-loss or portfolio allocation.
Lessons and recommendations
Key takeaway: Risk management strategies, diversification, and trading rules are needed to avoid buying high and selling low in the crypto market.
Recommendations: apply stop-loss mechanism, allocate proportion, keep backup in Cold Storage, and consider dollar-cost Medium (DCA) strategy to reduce the risk of emotional reaction.
What is Hackers Dump?
A fire sale is the act of selling assets in large quantities when prices fall sharply, often due to panic or a need for liquidation, causing prices to fall further and increasing losses.
What is the exact amount of damages?
According to the report, 7,816 ETH were sold, equivalent to ~$29.14 million; this action caused an additional ~$3.37 million in losses, and 6 wallets suffered a total loss of >$13.4 million.
Why do they lose money when they sell off?
They lose because they sell at a lower price than they bought; the rush to liquidation loses the opportunity to recover and realizes the loss.
How to reduce similar risks?
Apply risk management strategies: stop-loss, diversify assets, keep reserve funds, use Cold Storage and practice cost Medium .
