The post PAXG gains as on-chain shorts unwind amid gold rebound appeared on BitcoinEthereumNews.com.

On-chain PAXG short squeeze: whale losses flipped to $15.4M monthly gain A large on-chain trader shorted PAXG with 5× leverage using about $2.8 million in collateral to control roughly $30.3 million notional, then saw losses reverse into gains as prices rebounded, as reported by AInvest. The publication adds that realized profit from this position was approximately $12.7 million, contributing to a total monthly profit of $15.4 million across multiple leveraged trades. The report also described a contemporaneous opposing long by an early contributor known as “Loracle” at an on-chain derivatives venue, sized near $46.5 million with an average entry around $5,047, which later turned profitable. The article linked the reversal to a broader gold rebound influenced by macro catalysts, including Federal Reserve policy expectations and labor data, and noted the absence of institutional or regulatory commentary in the coverage. Why this matters for tokenized gold and on-chain leverage Tokenized gold’s growing activity shows how on-chain leverage can compress reaction time between macro signals and market outcomes, making squeezes more abrupt when liquidity is thin. One industry publication characterized the turnover shift this way: “Tokenized gold has overtaken major gold ETFs in trading volume in select periods,” said CoinCentral. Because perpetual swaps settle via periodic funding payments, short squeezes can intensify when funding skews against shorts and maintenance margins tighten. With shallower order books than major ETFs, slippage and forced covering can be pronounced during rapid moves. Volume leadership does not equal assets under management or lower risk. Market structure and custody differ materially from ETF markets, which can influence volatility, execution quality, and the path of liquidations. BingX: a trusted exchange delivering real advantages for traders at every level. The episode’s immediate effect was rapid deleveraging of concentrated short exposure and visibility into large opposing positions on public venue dashboards.…

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Filed under: News - @ February 18, 2026 12:22 am