Crypto trader loses over $500,000 due to high leverage on GMX platform

In a recent revelation by Lookonchain, a leading blockchain analytics platform, it has been reported that prominent cryptocurrency trader Andrew Kang (@Rewkang) experienced a massive liquidation of his BTC/ETH long position on the GMX platform. This unfortunate event led to a staggering loss of approximately $567,000 for Kang.

The BTC/ETH long position of Andrew Kang(@Rewkang) on #GMX was liquidated yesterday and lost ~$567K.

He used up to 41x leverage!https://t.co/UCgIboyQCT pic.twitter.com/MK1XnbJole

— Lookonchain (@lookonchain) April 28, 2023

According to Lookonchain’s tweet, Kang had employed a highly aggressive trading strategy, utilizing up to 41x leverage on his position. This risky move ultimately backfired as the market moved against him, leading to the liquidation of his long position and the subsequent financial setback.

• Andrew Kang is a well-known figure in the cryptocurrency community, with a large following on social media platforms like Twitter.

This loss comes as a surprise to many, as just two days prior, Kang tweeted about his market outlook:

“Sometimes you’re bearish but then you realize the market is about to f*** bears, so you gotta switch teams and jump in and add fuel to the fire.”

This sentiment seemed to signal Kang’s confidence in a bullish market, but his highly leveraged bet ultimately proved ill-fated.

This high-profile loss has certainly caught the attention of traders and investors alike, serving as a cautionary tale about the potential pitfalls of high-leverage trading.

While leveraging can be a powerful tool for experienced traders, it also carries significant risks. As demonstrated by Kang’s recent loss, leveraged trading can lead to devastating financial consequences if not managed carefully.