Hedge Fund Trend Research Loses ~$750 Million on ETH

In early February 2026, one of the notable institutional players in the crypto market, Trend Research (linked to Liquid Capital and founded by Jack Yi, @Jackyi_ld), has essentially fully exited Ethereum. Instead of the previously announced “buying the dip,” the fund sold nearly its entire position, locking in losses of approximately $747-750 million.

According to on-chain analytics from Lookonchain, Trend Research withdrew 792,532 ETH from Binance (worth roughly $2.59 billion) at an average price of around $3,267. Later, the fund deposited 772,865 ETH (worth ~$1.8 billion) back to Binance at an average price of $2,326. Only 21,301 ETH remains on the balance (about $44 million at current prices).

From Optimism to Forced Selling

On January 26, Trend Research CEO Jack Yi publicly stated that the current volatility was “the craziest short phase” and would not change the overall bullish market trend. He emphasized that the fund had no plans to alter its ETH strategy, would continue buying on dips, and had previously achieved up to 2.5x profits on Ethereum.

However, this week the situation flipped completely. Ethereum’s sharp drop (nearly 30% in a week, touching below $1,750) put the fund’s large leveraged position on Aave at serious risk of liquidation. To repay debts and avoid margin calls, Trend Research launched an accelerated sell-off, instead of accumulating at the bottom.

On February 6, Jack Yi published a philosophical post:

“Life is a long journey, and at every stage there will be failures and unpleasant encounters.”

Context and Implications

Trend Research (previously associated with LD Capital) has been known as a long-term Ethereum bull since 2015. The fund used a classic leveraged looping strategy: buying ETH, collateralizing it on Aave to borrow stablecoins, and then buying even more ETH. At its peak, the position exceeded $2 billion.

This story is a stark reminder of the risks even experienced players face: high leverage can turn a temporary correction into a major disaster. While the market is recovering (ETH is currently trading around $2,050 with daily gains), many view Trend Research’s mass liquidation as a capitulation signal from large holders.

For the market, this could act as a local bottom, or add extra selling pressure. Either way, it’s a clear example of how “paper” billions can turn into real losses in just a few days.

The crypto market remains extremely volatile. Even the most convinced bulls sometimes have to sell. Life really is a long journey, and the next chapter may bring both new setbacks and recovery.