Recently, the crypto market has been stirred up by a familiar "old friend"—Taiwanese artist Huang Licheng (Maji Dage) is once again on the edge of a cliff with his 25x leveraged Ethereum (ETH) long position on Hyperliquid.

Around April 2, the price of Ethereum quickly retraced. His opening price was approximately $2084.5, and the liquidation price was only $2040.5, with a liquidation buffer space that once dwindled to a mere 13 dollars. To prevent total forced liquidation, he had to proactively reduce his position by about 1700 ETH, enduring a realized loss of approximately $48,000.

This is not the first time. Maji Dage has long held a heavy position in 25x leveraged ETH long positions, and over the past year he has repetitively gone through the cycle of "heavy long position → retracement liquidation → recharge and fight again," experiencing hundreds of liquidations, with losses rising from tens of millions of dollars, with reports indicating even higher scales. This "repeatedly failing and fighting back" aggressive style has made him the "king of liquidation" in the community, leaving numerous onlookers shouting "so exciting."

Why is 25x leverage so dangerous?

Leveraged trading uses a small amount of capital to control a large position, amplifying both gains and losses. For example, with 25x leverage, the price of ETH only needs to move in the opposite direction by about 4% to possibly hit the liquidation line, instantly wiping out all margin. In this incident, the market sentiment fluctuations caused by Trump's related remarks further amplified this vulnerability—a small price movement could lead to an "account zero."

Maji Dage's case is not an isolated incident but a microcosm of high-leverage players: during a bull market, floating profits can reach hundreds of millions of dollars, but a single retracement can quickly erase gains, even leading to a "death spiral."

This vividly reminds us: in the crypto market, leverage is not a shortcut to wealth, but a risk amplifier. Blindly following trends and taking high multiples often comes at a heavy cost to ordinary investors.

How to participate in leveraged trading more rationally?

 

• Understand the liquidation mechanism: Always pay attention to the buffer space between the liquidation price and the current price, leaving enough safety margin.
• Strict risk control: Beginners are advised to start with low leverage or spot trading, set stop losses, and avoid emotional "holding on."
• Diversify decisions: Do not go all-in in one direction; combine on-chain data, macro trends, and fundamentals for a comprehensive assessment.
• Stay calm: Policy remarks and market sentiment fluctuations are normal; rationality is more important than "faith."

The crypto market presents both opportunities and risks. For most people, long-term holding of quality assets + professional data tools as support is a more sustainable path.

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Summary

This recent liquidation incident involving Maji Dage once again sounds a warning bell for the crypto market: while high leverage can amplify profits, it can also quickly erode the principal in market volatility.

Whether it's the "king of liquidation" style aggressive operation or the following attempts by ordinary investors, it reminds us— in the crypto world, risk management is always more important than chasing high profits.

I hope everyone can view leveraged trading more rationally, exercising more caution and preparation when participating in the market. Ultimately, sustainable strategies and ongoing learning are the keys to long-term survival in the crypto market.

Investing in cryptocurrencies carries high risks, and leveraged trading requires extra caution. This article is for informational discussion only and does not constitute any investment advice. Please participate rationally according to your own risk tolerance.

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