Liangxi's liquidation mainly has the following reasons:
Trading strategy aspect
• Over-reliance on high leverage: Accustomed to using 50x or even 100x high leverage. While high leverage can amplify returns, the risks also increase exponentially; a price fluctuation of over 2% could trigger a forced liquidation. For example, during the 'May 19 crash' in 2021, he profited from shorting with high leverage, but when Bitcoin rose in the second half of the year, high leverage caused him to quickly face liquidation due to misjudgment. In February 2025, he made a high-stakes bet on ETH and BTC with 50x leverage, earning $6.83 million in a single day, but after the market reversed, he faced an unrealized loss of over $15 million, falling into a 'double kill' situation.
• Lack of reasonable position management: Failing to allocate positions according to their own risk tolerance, often operating with heavy or even full positions. In times of high market uncertainty, such operations can lead to huge losses if the direction is wrong. For example, during the Bitcoin rebound phase in 2022, they misjudged the direction and had overly heavy positions, leading to liquidation and debts of millions.
• Not strictly executing stop-loss: There was a sense of luck in trading, failing to decisively cut losses when the market was unfavorable, instead holding onto positions, hoping for a market reversal, which ultimately led to losses that expanded beyond bearable limits, resulting in liquidation.
Market cognition aspects
• Misjudgment of market trends: The cryptocurrency market is complex and ever-changing, and 凉兮 misjudged the market trends. During the upward trend of Bitcoin in the second half of 2021, they insisted on a short position and failed to timely adjust their strategy, resulting in liquidation.
• Ignoring market risks: Overemphasizing profits while underestimating the risks of the cryptocurrency market, including significant price fluctuations, changes in regulatory policies, and market manipulation. They were not adequately prepared to respond to these risks.
Psychological and emotional aspects
• Greed and gambling nature: After becoming wealthy, desires inflated, wanting to continuously obtain high profits, falling into excessive speculation and gambling-style trading, pursuing high risks for high returns while ignoring risk control.
• Imbalanced mentality: Multiple liquidations and debts led to an imbalanced mentality, severely affecting rational decision-making during trading. For instance, exhibiting extreme emotions during a live broadcast made it difficult to make correct trading decisions in that state. #BitcoinContract#btc#凉兮 $ETH $BTC #币安HODLer空投HEMI
