In the cryptocurrency market, leverage is a double-edged sword—capable of making you rich overnight or reducing you to nothing in an instant!
The latest on-chain data shows that a market player, once referred to as a smart trader, suffered a setback in a 25x leveraged ETH short trade. This trader not only incurred a realized loss of up to $15.81 million on the closed positions but is also facing a floating loss of $3.3 million. Ironically, at one point during this operation, he had a floating profit exceeding $20 million, but due to his failure to take profits in time, he lost all the gains and ended up with nearly $16 million in losses.
Leverage multiple: 25x—this means a price fluctuation of 4% is enough to wipe out the position.
Profit and loss turning point: from +$20 million to -$15.81 million, total drawdown reached $35.81 million.
Current situation: Still facing a floating loss of $3.3 million, risk exposure is not completely closed.
Greed is the greatest enemy of leveraged trading.
Floating profits do not equal actual gains.
Under high leverage, market reversals often come unexpectedly.
Discipline in stop-loss is more important than trading skills.
This case vividly illustrates the high-risk nature of cryptocurrency derivatives trading. Even the 'smartest' traders can suffer heavy losses in a rapidly changing market when blinded by greed, coupled with the amplifying effect of high leverage. It also reminds us: in the crypto market, preserving capital is always more important than chasing excessive returns.
Remember this trader's $15.81 million tuition fee: the market is never short of stars, but lacks long-term survivors. Control leverage and strictly stop losses—this may be the survival rule that every trader should remember.