The maximum leverage strategy on silver: $9.5 million at stake by Silver Ironhead Short

On February 3rd, blockchain data confirmed a significant move in the derivatives market: the trader known as ‘Silver Ironhead Short’ (address 0x61cee) reallocated massive resources to a new short position on silver. According to HyperInsight analyses, shared by BlockBeats, this is a $9.5 million position with 20x leverage on the xyz:SILVER contract, with an average entry price of $83.73 per unit.

A Heavy Short Position Re-enters the Scene

This trader has demonstrated persistent conviction in a bearish outlook on silver. The new position, built with 20x leverage, represents a substantial bet on the decline of the precious metal’s price. At the time of opening, the position was already in an unrealized loss of $272,000, but this did not deter the operator from keeping the position open. The use of this extremely high leverage amplifies both potential gains and losses, making it a high-risk strategy typical of experienced derivatives traders.

Past Mistakes Do Not Deter Even More Aggressive Double Leverage

The history of this address paints a more complex picture. Previously, Silver Ironhead Short closed a long-term short position on silver, incurring a significant loss of $4.79 million. Despite this negative outcome, the trader decided to re-enter the market with an even higher leverage position, signaling unwavering confidence in their bearish analysis. This pattern—returning after a major loss—reveals this operator’s determination to pursue their market thesis on silver.

A Bearish Bet That Continues to Polarize Sentiment

This trader’s persistence in maintaining massive, high-leverage short positions on silver draws attention from the crypto community and professional traders. The combination of substantial amounts ($9.5 million), aggressive leverage (20x), and a history of previous losses creates a fascinating case study in trader psychology within derivatives markets. These extremely high-leverage operations remain a hallmark of professional crypto trading, where profit and risk margins are exponentially amplified.