A well-known trader in the crypto circle took a 25x leverage long position betting on ETH price movement and ended up getting caught off guard. Originally, they had over $2 million in unrealized gains, but now it has shrunk to a $287,000 unrealized loss. This incident has prompted many to reevaluate the risks of leveraged trading.

High leverage is like dancing on the edge of a cliff — it’s definitely exciting when making money, but once the market moves against you, losses can rapidly eat away at your principal. This event serves as a reminder to the market: no matter how confident you are in the market direction, 25x leverage means that even tiny price fluctuations can trigger a chain reaction. Ultimately, those who survive are often not the ones who bet correctly on the direction, but those who manage risk most prudently.