Following the recent sudden decline in the cryptocurrency market, some investors are reporting large losses, especially in their leveraged transactions.
During the sudden decline yesterday, Bitcoin lost approximately 5% of its value, but there were many double-digit losses, especially on the altcoin side.
An anonymous trader, known as “Crypto Nerd” in the cryptocurrency Twitter community, claimed in his statement today that he lost his entire fortune during the crash last night.
The trader wrote that he had a 3x long position on memecoin Pepe (PEPE) before the crash and woke up to find that all his assets had been liquidated. According to the screenshot he shared, the trader's total loss overnight was approximately 1.14 million dollars.
However, in his new statement, he explained that since Binance set the liquidation threshold to 83%, not all of his funds were liquidated, but an amount of around $180,000 was automatically reflected in his wallet.
Despite this, the trader, whose loss amount was very high, announced that he had earned the funds in question by trading since 2017.
This incident that the trader went through shows how risky it is to make leveraged transactions in the cryptocurrency market and especially in memecoins, which are known for their high volatility.
*This is not investment advice.