Huobi founder Li Lin publicly denied investment ties to Trend Research, distancing himself from a Hong Kong fund that lost approximately $686 million on a collapsed leveraged Ethereum (ETH) position.
The Avenir Group chairman stated he maintained his Bitcoin (BTC) and ETH holdings throughout the recent market downturn.
Market speculation had blamed Asian institutional selling for triggering February's crypto crash. Li Lin's denial came as Trend Research, run by Liquid Capital founder Jack Yi, liquidated over 400,000 ETH to avoid margin calls after Ethereum's 30% weekly decline.
Massive Liquidation Event
Trend Research sold roughly 404,000 ETH between February 2-7, reducing holdings from 651,170 tokens to approximately 247,080 as prices fell toward liquidation thresholds.
The Hong Kong investment firm faced automatic collateral sales on Aave between $1,698 and $1,562 per ETH.
Blockchain analytics platform Arkham documented 411,075 ETH transfers to Binance since early February. The fund originally accumulated a $2 billion leveraged position by borrowing stablecoins against ETH collateral on Aave, then purchasing additional Ethereum with borrowed funds.
Ethereum dropped to $1,750 on February 4, its lowest level since April 2025, putting highly leveraged positions under severe pressure. Jack Yi acknowledged his market bottom call came too early but maintained a bullish long-term outlook despite the forced selling.
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Mistaken Identity
Li Lin explicitly stated he holds no investment in Trend Research or an entity referenced as "Garrett," rejecting rumors linking Avenir Group to the liquidation cascade. His family office operates as Asia's largest institutional Bitcoin ETF holder, managing over $1 billion in digital assets.
The clarification highlights how market participants attributed the selloff to prominent Hong Kong crypto figures without verification. Li Lin separately announced plans in October 2025 for a $1 billion Ethereum trust alongside investors including Fenbushi Capital and HashKey Group.
Trend Research's collapse demonstrates risks inherent in leveraged DeFi strategies during volatile markets. The fund's looped borrowing approach amplified both gains during Ethereum's rally and losses during the February decline.
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