A major whale who was long on altcoins has recently become a cautionary tale. Since opening his position in November, this guy has been stuck in a high-leverage hell, with his holdings shrinking from a peak of $25 million down to just $2.33 million, with a total loss of over $42.7 million.

Even more outrageous, just this round of chain liquidations caused him to lose $6.19 million. Every time the market adjusts, it triggers a liquidation, and one margin call after another keeps coming. As the market started to rebound recently, he ran out of bullets, watching the market rise but having no funds to follow.

In simple terms—leverage is a double-edged sword. When used correctly, it can amplify gains; when misused, it can wipe out your principal. Many people still think they can get rich overnight with high leverage, but the outcome is often just like this. Have you really thought it through?