A huge whale on $SUI is about to lose over $18,000,000 🔥🤯

Here's an explanation of the situation:

The whale has taken a long position on $SUI, meaning they've invested expecting the price of SUI to increase.

The investment here is around $20 million in total.

This whale has deposited 4.1 million $SUI tokens (valued at $19.3 million) and 100,000 $sSUI (staked SUI, valued at $470,000) into #Suilend, a decentralized lending platform where users can deposit assets to use as collateral for loans. Using this collateral, the whale borrowed $14.4 million in stablecoins.

In these lending platforms, there's a mechanism called liquidation to protect the platform from losses if the collateral's value drops significantly.

The loan has a liquidation threshold; if the value of the collateral (here, $SUI and $sSUI) falls to a point where it's no longer sufficient to cover the borrowed amount plus interest, the position gets liquidated. For this whale's position, if the price of SUI drops to $4.56 per token, it triggers liquidation.

This means the platform would sell off the collateral to repay the loan, potentially at a loss for the whale if the sale price of #SUI is below the amount needed to cover the $14.4 million loan.