TechCrypto

Liquidating a whale by hand, 22 times

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Based on the episode description, not a full transcript. Source evidence retrieved 12/11/2026, 10:32:24 UTC.

Briefings

Patrick McKenzie recounts a 2022 incident where he manually liquidated a Solend whale account 22 times during the FTX collapse. He used a 2022 Bits About Money essay to explain leverage math, noting that a 10x leveraged firm loses 9% equity per loss. The process involved software failing 70% of the time, requiring Patrick to spend an evening in Tokyo. This episode highlights the risks of high leverage and the human element in algorithmic liquidation.

Key points

• Patrick McKenzie manually liquidated a Solend whale account 22 times during the FTX collapse in 2022.
• A 10x leveraged firm loses approximately 9% of equity per loss due to leverage mechanics.

Context

Patrick McKenzie explains leverage math from a 2022 Bits About Money essay, detailing how a 10x leveraged firm loses 9% equity per loss. He recounts a Solend incident where the protocol pushed SOL interest rates to 2,600% and failed to attract deposits, forcing manual liquidation efforts.

Limitations

Evidence is limited to a single podcast episode from November 2026. Specific dates for the Solend incident are not fully confirmed beyond the 2022 timeframe. The software failure rate of 70% is a reported statistic, not a verified historical record. Future performance of 2x Google leverage is a hypothetical projection.

Generated by Bittrees-hosted qwen35-2b sha256:aaf42c8b7c3c on 12/11/2026, 10:34:05 UTC. Based on publisher-provided feed evidence; may not cover the full original article. Check the source for details.

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