Big Smo's Trading Account Hit with Massive Monthly Drawdown

A high-profile trading account has suffered substantial losses this month, illustrating the extreme risks inherent in leveraged cryptocurrency positions. Big Brother’s portfolio currently stands at $7,996, with the account maintaining an aggressive 10x leveraged long position on HYPE. While the account boasts an unrealized gain of $4,692 on the position, the bigger picture reveals a troubling trend: a cumulative loss of $3.37 million over the past 30 days, according to data tracked by NS3.AI.

The Concentrated Bet on HYPE

The account’s entire liquidity is deployed into a single leveraged long bet on Hyperliquid (HYPE). With HYPE currently trading at $30.54 and experiencing a 1% decline over the past 24 hours, the account remains exposed to the coin’s price volatility. Despite booking nearly $4,700 in unrealized profits from the current position, this modest gain pales in comparison to the account’s overall monthly losses, highlighting the precarious nature of concentration risk.

Understanding the Leverage Trap

Leveraged trading amplifies both gains and losses exponentially. A 10x long position means the account’s movements are magnified tenfold compared to the underlying asset’s price action. When HYPE fluctuates even modestly, the account’s equity can swing dramatically. The $3.37 million monthly loss suggests that previous positions or accumulated liquidations have devastated the portfolio, despite the current position showing paper profits. This dynamic perfectly demonstrates why leveraged positions demand rigorous risk management and position sizing discipline.

Volatility and Market Exposure Risk

Cryptocurrency markets, particularly derivatives, are characterized by extreme intraday and weekly volatility. HYPE’s recent trading volume of $8.91M in 24 hours indicates significant market activity, which can trigger sharp price swings. Trading with 10x leverage in such an environment is essentially gambling—the margin for error becomes razor-thin. One unfavorable move can wipe out the entire account, regardless of the unrealized profits currently displayed on the screen. This case serves as a stark reminder that substantial paper profits can evaporate instantly when leverage is involved.