Leveraged positions function like compound debt—the longer you hold them, the higher the carrying costs accumulate. The math works until collateral value suddenly reverses direction, turning your hedging buffer into a liability instead.

When that flip occurs, transparency stops being therapeutic. It becomes a trigger for cascade liquidations and systemic contagion across interconnected positions. That's when disclosure morphs from damage control into shock therapy for the entire market structure.

The real risk isn't the bad news itself—it's the timing of revelation hitting when your margin cushion has already eroded.