According to BlockBeats, on July 23, Onchain Lens monitoring showed that James Wynn's BTC (40x leverage) and PEPE (10x leverage) long positions were partially liquidated, with a remaining floating loss of $266,000.
Analysis by Lei Ge:
BTC + PEPE combination, double the risk? Using extremely high leverage to long two cryptocurrencies with vastly different volatility is a strategy that is worth discussing. BTC is relatively stable, but only relatively! PEPE is purely driven by sentiment. When the market is in panic, the fragility of this combination will be infinitely amplified. Diversifying investments is a good thing, but adding high leverage may actually turn it into a diversified liquidation.
Partial liquidation is a warning, not relief! This time it was only partially liquidated, still holding a floating loss of $260,000, which means that his position risk alert has not been lifted at all. If the market drops a bit more, or if there’s a spike, the remaining position will likely also be lost, which is the prelude to a chain liquidation.
Meme coins like PEPE often lack depth compared to mainstream coins. When faced with extreme volatility, finding a counterparty to close the position may not be possible, or there may be significant slippage. During forced liquidation, the actual transaction price may be worse than the expected liquidation price, leading to greater losses. High leverage combined with low liquidity is a disaster.
Summary by Lei Ge:
If you want to survive long in the futures market, risk control is always the top priority! Do you want to get rich overnight, or do you want to have a steady stream of income? Follow Lei Ge, and in the next issue, we will discuss how ordinary players can set a life-saving leverage ratio and what else can be done besides just lying flat at the edge of liquidation.
