According to EmberCN on Twitter, a Hyperliquid trader suffered a significant loss after deploying $2.96 million USDC with high leverage. Within two days, using 25x leverage across three trades, the user lost $2.788 million, withdrawing only $172,000 USDC after closing all positions. This case demonstrates the extreme risks associated with high leverage trading in the crypto derivatives market, highlighting potential liquidity issues and volatility-induced liquidations. Such sizable losses can impact market sentiment and lead to increased caution among traders, potentially reducing overall leverage ratios on platforms like Hyperliquid (source: @EmberCN, Twitter, May 19, 2025).