A crypto trader has recently experienced a huge loss in $PEPE. As per the data from Lookonchain, the trader opened a $PEPE long position for 10x leverage

A crypto trader has recently experienced a huge loss in $PEPE. As per the data from Lookonchain, the trader opened a $PEPE long position for 10x leverage

A crypto trader has recently experienced a huge loss in $PEPE, as reported by on-chain analytics provider, Lookonchain. The trader, who is known for the wallet address '0x507...6BeDb6,' went long on $PEPE with 10x leverage via the crypto exchange Hyperliquid. However, the market saw a sustained decrease, and the position went massively negative, resulting in a $3.36M loss.

To avoid liquidation, the trader deposited an additional 3.818M $USDC into the margin account on Hyperliquid and partially closed the positions. Despite these efforts, the trader still faces an enormous risk with $3.238M in floating loss and has an approximate liquidation price of 0.005219 for 1,000 $PEPE tokens.

This incident highlights the significant risks associated with leveraged trading, especially in the highly volatile crypto market. The trader began the $PEPE long position on the 24th of this month with the price showing signs of recovery. However, the trader's calculations ultimately did not lead to a profitable outcome.

At present, the trader holds a $PEPE position valued at $27.53M, taking into account an entry price of 0.00814 per 1,000 $PEPE tokens. However, with the sustained decrease in price, the respective position's liquidation price is now 0.005219 for each 1,000 $PEPE tokens, as Lookonchain reports.