According to @EmberCN, four aggressive crypto derivatives traders who repeatedly pyramided with floating profits via rolling positions have round-tripped from large gains to zero or even principal losses after the latest move, highlighting the drawdown risk of this approach, source: @EmberCN on X, Aug 26, 2025. The pattern reported is the same style of rolling unrealized PnL to scale up, the same process of achieving huge gains through compounding, and the same outcome of giving back all profits, which is directly relevant for leverage risk assessment on perpetual futures, source: @EmberCN on X, Aug 26, 2025. For execution, the case indicates traders should prioritize partial profit-taking and de-leveraging into volatility instead of continuously compounding with unrealized gains to mitigate tail-risk of equity wipeouts, source: @EmberCN on X, Aug 26, 2025. The post discloses sponsorship by Bitget, providing context for derivatives participants reviewing platform risk disclosures and leverage settings, source: @EmberCN on X, Aug 26, 2025.

According to @rovercrc, ETH is not overheated because perpetual funding rates have not spiked as they did at the 2021 all-time high. According to @rovercrc, the lack of a funding-rate surge implies less aggressive long leverage versus prior peaks, lowering blow-off liquidation risk and providing room for trend continuation if spot demand improves. According to @rovercrc, traders should monitor any acceleration in funding rates as a signal that leverage risk is rising toward 2021-style conditions.

According to @ai_9684xtpa, a trader compounded $125,000 into $42.987 million in four months, then suffered an 84% drawdown, banked $6.865 million, and ultimately exited with $770,000 after a three-day 98% loss (source: @ai_9684xtpa, Aug 19, 2025). According to @ai_9684xtpa, the blow-up was linked to rolling positions, no stop-loss/take-profit, and high leverage—showing how overexposure in crypto derivatives can erase gains rapidly (source: @ai_9684xtpa, Aug 19, 2025). According to @ai_9684xtpa, this case illustrates that unchecked compounding and leverage without predefined risk limits can lead to near-total equity loss within days in volatile markets (source: @ai_9684xtpa, Aug 19, 2025).

According to @ai_9684xtpa, ETH briefly fell below $4,400, pushing a 25x ETH long held by the trader nicknamed 麻吉老哥 to a $6.036M unrealized loss (source: @ai_9684xtpa on X, Aug 18, 2025). The same update adds that BTC and HYPE longs show a combined $295K unrealized loss, while a PUMP long remains in profit (source: @ai_9684xtpa on X, Aug 18, 2025). The post highlights acute intraday volatility in ETH impacting highly leveraged positions across majors and memecoins, a key factor for short-term risk monitoring (source: @ai_9684xtpa on X, Aug 18, 2025).

According to @rovercrc, a crypto whale opened high-leverage long positions of 22,500 ETH at 25x and 150 BTC at 40x, with the post citing roughly 100 million dollars in ETH and 17.5 million dollars in BTC notional size on Aug 15, 2025 (source: @rovercrc). High leverage reduces margin buffers and raises liquidation risk during intraday swings in derivatives markets, which can amplify short-term volatility for BTC and ETH futures (source: Binance Futures education). Traders tracking this flow can monitor funding rates and open interest to assess positioning pressure on leveraged longs in BTC and ETH perpetual swaps (source: Binance Futures metrics glossary).

According to @ai_9684xtpa, Big Candle Capital (BCC) suffered a single-day asset drawdown of 24.495 million dollars, with the 7-day PnL curve peaking at 20.675 million dollars on August 13 before flipping negative the following day, and the account was previously reported to have earned 114 million dollars over 30 days (source: @ai_9684xtpa on X, August 15, 2025). Based on these reported PnL swings and what the author described as a market plunge, the episode highlights elevated leverage and concentration risk for short-term crypto traders during sharp sell-offs (source: @ai_9684xtpa).

According to @ai_9684xtpa, a sudden wick caused short-term misalignment between order book prices and Mark Price across multiple Binance pairs on Aug 14, 2025 (source: https://twitter.com/ai_9684xtpa/status/1955975289097609603). The author suggested the desync may have been driven by a surge of orders in a short time, amplifying volatility risk for derivatives traders (source: https://twitter.com/ai_9684xtpa/status/1955975289097609603). Such dislocations are trading-relevant because Binance liquidations are determined by Mark Price rather than Last Price, meaning temporary Mark Price spikes or dips can directly increase liquidation probability during extreme moves (source: https://www.binance.com/en/support/faq/what-is-mark-price-and-last-price-in-futures-trading-360033525031).

According to @lookonchain, trader AguilaTrades closed his BTC and ETH long positions and realized a profit of over 11 million dollars. Source: @lookonchain on X, Aug 10, 2025, x.com/lookonchain/status/1954397068841075165 The post states he avoided losses and liquidation by exiting the longs. Source: @lookonchain on X, Aug 10, 2025, x.com/lookonchain/status/1954397068841075165

According to @rovercrc, a whale deposited 9.5M USDC into Hyperliquid to avoid liquidation on a 66.4M ETH short that is showing an unrealized loss of 19.9M as of Aug 10, 2025, signaling elevated position stress and potential knock-on effects if ETH rises further; source: X/@rovercrc, Aug 10, 2025. On perpetual venues like Hyperliquid, adding collateral reduces liquidation risk by improving margin ratios and pushing the liquidation price farther from spot, which can extend a losing short’s runway; source: Hyperliquid documentation on risk and liquidations. If ETH accelerates higher, forced buybacks from short liquidations can create upward pressure and amplify volatility, a well-documented mechanic of perp markets; source: Binance Futures liquidation and ADL documentation. Traders can monitor ETH funding rates and open interest to gauge crowding and squeeze risk, as persistently positive funding with rising price often reflects long dominance into stressed shorts; sources: Binance Futures funding rate explainer and Deribit education on open interest.

According to @ai_9684xtpa, on-chain address 0x9cb...c06ce has been 5x short ENA since late July and now shows an unrealized loss of 3.288 million dollars, with an ENA short entry at 0.5236 and current price 0.7328, source: @ai_9684xtpa, X, 2025-08-09. The same address also holds shorts in ETH, LDO, MKR, and CRV with cumulative unrealized losses of 2.84 million dollars, source: @ai_9684xtpa, X, 2025-08-09. The source adds the trader began steps yesterday to avoid liquidation, source: @ai_9684xtpa, X, 2025-08-09.

According to @rovercrc, more than $18 billion worth of Bitcoin short positions are at risk of liquidation if BTC reaches the $125,000 level. This development signals heightened volatility and potential for a major short squeeze in the Bitcoin market, which could drive rapid price movements and impact broader crypto trading strategies. Traders should closely monitor BTC price action around this threshold for significant liquidation events and adjust leverage and risk management accordingly. Source: @rovercrc.

According to @EmberCN, well-known trader @qwatio has aggressively increased his short position to a total value of $300 million through continuous roll-over of floating profits. This high-leverage tactic mirrors the approach previously used by @AguilaTrades, who reportedly lost $40 million using similar methods. Such strategies, which involve escalating leverage without margin for error, can lead to significant losses if market direction reverses. Traders should monitor for potential liquidations and volatility spikes, as these large positions may impact crypto market order books and price stability. Source: @EmberCN

According to Ki Young Ju, using leverage above 5x in Bitcoin (BTC) trading dramatically increases the probability of liquidation within 24 hours. Ju highlights that Bitcoin has moved more than 2% on 82% of trading days this month, making high-leverage positions extremely risky. The probability of surviving a week with 50x leverage is just 0.000612%, emphasizing the importance of risk management for traders in the current volatile crypto market, as cited by Ki Young Ju on July 30, 2025.

According to @rovercrc, a large-scale trader, often referred to as a whale, has opened a $76 million long position on Bitcoin (BTC) using 40x leverage. This significant leveraged position indicates strong bullish sentiment from a major market participant and could impact near-term Bitcoin price volatility and trading strategies. Traders should monitor potential liquidations and price swings as high-leverage positions can trigger rapid market moves. Source: @rovercrc.

According to @ai_9684xtpa, ETH has broken above the $3900 mark, enabling AguilaTrades to realize over $4.77 million in unrealized profit on a 25x leveraged long position with 25,000 ETH (worth $97.23 million). The entry price for this position was $3,701.04, with a liquidation price at $3,705.1. However, these gains have not fully offset AguilaTrades' prior losses of more than $22.3 million over the past two weeks. This development highlights the volatility and high-risk, high-reward nature of leveraged ETH trading, with potential implications for market sentiment and liquidity as large positions unwind or persist. Source: @ai_9684xtpa.

According to Lookonchain, trader 0xcB92 has maintained a substantial short position of 40,000 ETH, valued at $90.3 million, without closing the trade and currently holds an unrealized profit exceeding $21.45 million (source: x.com/lookonchain). This ongoing short position could signal persistent bearish sentiment among sophisticated market participants, potentially impacting ETH price volatility and influencing liquidity on major exchanges. Crypto traders should closely monitor this position for signs of liquidation or adjustment, as large-scale moves may trigger significant short-term price fluctuations in ETH.

According to @twitteruser, traders are increasing leverage on their ETH positions with a price target of $4,000, highlighting current market enthusiasm. However, the post warns that this could be a trap, implying a potential for increased liquidation risk if the market reverses. For crypto traders, monitoring leverage ratios and open interest on ETH/USD pairs is crucial as elevated leverage often precedes sharp volatility and potential liquidations. This insight is relevant for managing risk and timing entries or exits in the Ethereum (ETH) market. Source: @twitteruser on Twitter.

According to Crypto Rover (@rovercrc) on June 21, 2025, Bitcoin (BTC) traders should be alert as a potential 'trap' scenario is forming. Crypto Rover highlights that current BTC price action may lure traders into false breakouts, increasing the risk of sudden reversals. The analysis points to heightened volatility and emphasizes the importance of monitoring key resistance and support levels to avoid liquidation events. This development is significant for active traders as it could trigger rapid price swings, impacting both spot and derivatives markets. Source: Crypto Rover Twitter.

According to Michaël van de Poppe (@CryptoMichNL), Bitcoin has started to lose a critical support level, which could accelerate downward momentum. If Bitcoin falls below the $105,000 mark, it may trigger a wave of liquidations, potentially deepening the correction and increasing volatility in the crypto market. Traders should closely monitor this level, as liquidation events often lead to sharp price moves and can impact other cryptocurrencies. Source: @CryptoMichNL on Twitter.

According to @KookCapitalLLC on Twitter, a significant short position is currently being built against the HYPE token, as evidenced by large sell orders and open interest increases (source: https://twitter.com/KookCapitalLLC/status/1934901401190322465). Traders should monitor HYPE for potential downside volatility and increased liquidation risks. The mention of 'CZ' may signal speculation about Binance or Changpeng Zhao’s possible involvement, which could further influence trading sentiment and liquidity for HYPE and related altcoins.