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, resulting in a massive $3.36M loss. However, the position is still open and the trader is trying to survive in the hope of a price recovery. The on-chain analytics provider shared insights into this incident in a recent X post.
Trader Loses $3.36M on $PEPE Long Position with 10x Leverage
The crypto trader reportedly using the wallet address “0x507……..6BeDb6” reportedly executed 10x leverage on a $PEPE long position via the crypto exchange Hyperliquid. Nonetheless, the market witnessed a persistent decline. As a result of this, the position became considerably negative, leading to the significant loss.
Trader Closes Opened Positions to Prevent Further Losses
This noteworthy loss made the trader extremely cautious about the potential liquidation. Hence, to deal with this, the trader reportedly deposited extra 3.818M $USDC tokens into the margin account on Hyperliquid. Subsequently, to avoid any further losses, the trader also closed the open positions.
However, irrespective of these endeavors, the trader is facing a considerable risk, with an approximate $3.238M in approximate floating loss. The trader reportedly started the $PEPE long position on the 24th of this month. At that point, the price was signaling a recovery. Nevertheless, the trader’s calculations failed to offer a fruitful outcome.
Crypto Trader Still Owns $PEPE Position Valued at $27.53M
At the moment, the trader possesses up to $27.53M in the value of a $PEPE position. It takes into account $0.00814 as a per-1,000 $PEPE token entry price. Nevertheless, with the continuous decline in the price, the respective position’s liquidation price currently stands at $0.005219 for each 1,000 $PEPE token. According to Lookonchain, this event points toward the inherent risks when it comes to leveraged trading, particularly in the extremely volatile crypto market.
