At 2 a.m., my phone kept vibrating nonstop. Groggily, I unlocked the screen, and a voice message from a fan popped up, trembling with a crying tone: "Emergency! 10,000 units of crypto assets all in with 10x leverage on XRP, just a 3-point pullback, and the account was wiped out! How is this possible…"

I looked at the trading screenshot he sent. Good grief, 9,500 units of principal all-in, going all-in with no stop-loss. This isn’t trading; it’s throwing money into a fire pit.

Having been in this market for so many years, I’ve seen too many stories of "all-in = guaranteed profit." Today, I must clarify: using all your capital incorrectly is even faster than closing positions gradually. Especially now, with such volatile market swings, people who don’t understand position logic will be eventually harvested by the market.

**Don’t blame leverage; the real culprit is position density**

Many people start blaming leverage after getting liquidated, but they’re looking at the wrong culprit. What causes you to go broke overnight isn’t leverage itself, but the proportion of your principal you put into the full position. I call this "position density."

A simple calculation makes it clear:

Suppose your account has 1,000 units of capital. If you put all 900 units into a 10x position, even a 5-point move against you will trigger a liquidation, wiping out your account instantly, with no chance to react.

But if you only use 100 units to open a 10x position? Even a 50-point move against you might cause liquidation. The difference between these scenarios is the difference between "staying alive" and "being eliminated immediately."

That fan is a typical example of excessive position density—putting 95% of the principal all in. Such operational logic can’t go far in any market.