One of the largest market makers in the sector, as estimated, normally aims to stabilize prices and profit from small movements through grid strategies. However, according to claims, this time some of the system’s orders reacted unexpectedly for a short period.

Ethereum Plummeted Instantly: Bots in Panic

Although not officially confirmed, it is being discussed that an automated buy-sell strategy used by one of the sector’s major players went out of control, causing prices to collapse.

Observers suggest the potential chain reaction unfolded as follows:

• Bot A sent an order.

• Bot B reacted quickly and created additional orders.

• Bot C stepped in, possibly triggering a stop-loss chain.

A trader reportedly said:

“The price dropped, got stuck, and then bounced back quickly. It wasn’t a normal sell-off; it was entirely a system-triggered chain reaction.”

Some exchanges may have experienced temporary gaps in order books, possibly triggering other systems, causing the price to fluctuate within minutes.

JUST IN: Ethereum is experiencing abnormal price swings due to a malfunction in a market maker’s grid trading strategy. pic.twitter.com/pXusXiZTGY

— Coin Bureau (@coinbureau) February 7, 2026

Market Maker’s Silence Sparks Panic

Allegedly, the relevant market maker has yet to release an official statement. Some technical observers say the incident may have been linked to a single algorithm component and that the system might have stabilized quickly.

Analysts note that such mini-chaos events highlight the fragility of crypto markets. Even a minor technical deviation can create a chain reaction, potentially triggering short-term panic in markets dominated by algorithmic trading.

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The post Major Claim in Ethereum: Did Bots Trigger Each Other? appeared first on Coin Engineer.

Trader’s Gains and Collapse 

According to Lookonchain, the trader compounded profits on Hyperliquid, growing the account to $29.6 million. They held a 66,749 ETH position, valued at roughly $303 million. Two days ago, the trader closed the longs, locking in $6.86 million profit and leaving $6.99 million in account equity. 

However, the trader quickly re-entered the market with another large ETH long. The market then reversed, resulting in a disaster. $6.22 million worth of positions were liquidated, erasing nearly four months of gains in under 48 hours. The account balance now stands at $771,000. 

https://twitter.com/lookonchain/status/1957342058802487525

Ethereum Dip Buying Opportunities 

Analyst Michaël van de Poppe sees the current pullback as an accumulation chance. He identifies the $4,100–$4,200 zone as ideal for dip buying. He expects at least a 10% rebound from this level. Ethereum’s volatility is likely to decrease soon, paving the way for a new accumulation phase. 

Meanwhile, Kiyotaka data shows strong resting buy orders down to $3,900. These accumulation zones indicate high buyer interest if ETH declines further. Disciplined dip buyers could benefit significantly from this pullback. 

 This case demonstrates the risks of aggressive ETH longs. However, the market still offers strategic opportunities for careful traders. 

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates. 

The post Ethereum Trader Turns Millions, Loses Everything Overnight appeared first on Coin Engineer.