An Ethereum whale was liquidated for over $106 million on the decentralized finance (DeFi) lending platform Sky as ETH prices fell by more than 14%. The investor, who lost 67,570 ETH, faced liquidation when the collateralization ratio dropped to 144% due to the asset's decline on April 6. Sky, which enables users to create collateralized debt positions by depositing ETH to borrow its stablecoin DAI, triggered the liquidation as ETH's value crashed to $1,547, the lowest since October 2023. The system requires an overcollateralization ratio of at least 150%, meaning users must deposit $150 worth of ETH to borrow 100 DAI. In the broader market, approximately 320,000 traders experienced liquidations totaling nearly $1 billion within the same timeframe, primarily affecting ETH positions. The current market turmoil is also attributed to reactions to statements by US President Donald Trump regarding tariffs, contributing to the downward trend in cryptocurrency prices.

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