"Shell"ed: The blood and tears lesson of 20x leverage on ETH

When leveraged trading encounters a downward trend, the biggest fear is that the more you add to your position, the more you get trapped. Little Z, the big shot, this time demonstrated what “turtle-speed loss” really means—using 20x leverage to go long on Ethereum, watching helplessly as the unrealized loss surged to 139,297.68 US dollars, which is close to 1 million RMB. In front of this number, the down payment for a third- or fourth-tier city’s house disappears in an instant.

The deeper the add-on, the greater the loss

The most heartbreaking part isn’t the loss itself, but the process of adding to the position. Every time you throw money in with the hope of bottom-fishing, only for the market to keep falling, forcing you to add more and more, ultimately trapping you in a quagmire you can’t escape. This is the deadliest “turtle” way in leveraged trading—refusing to cut losses and instead adding more and more. Little Z grimaced at the camera and shouted, “My skills are lacking, the pressure is huge,” which isn’t just a rant about trading but also a portrayal of the moment of breakdown every leveraged trader experiences.

Why is leverage trading so “turtle”

20x leverage seems to offer quick profits, but in reality, it amplifies not only gains but also risks. When the market moves against you, your capital can vanish at 20 times the speed. Ethereum’s current price fluctuates around $2.13K. If a trader doesn’t set a clear stop-loss, even small fluctuations can wipe out the entire position. That’s why people often say, “Leverage is a double-edged sword”—it offers benefits, but also dangers.

No stop-loss, regret will come too late

From Little Z’s case, the most critical mistake was not strictly executing a stop-loss plan. No matter how optimistic you are about the market or how many times you add to your position, once the loss reaches your acceptable limit, cutting losses immediately is the rational choice. Otherwise, what awaits is deeper despair—not just paper losses, but psychological torment. Next time you face leverage, remember: protect your principal to have a chance to bounce back.