Seven well-known traders have collectively lost tens of millions of dollars on the HyperLiquid platform, wiping out what were once record-breaking profits. The same high leverage that fueled their meteoric rise ultimately triggered catastrophic losses.
According to data shared by the analytics team Lookonchain, these cases serve as a stark reminder of how quickly the market can punish overconfidence.
From Glory to Collapse
Lookonchain posted performance charts of several prominent traders on X, illustrating the devastating effects of aggressive leverage.
“Avoid high-leverage trading. It can make you rich at first, but it will eventually destroy everything you’ve earned,”
the analysts cautioned.
Each chart tells a similar story — rapid growth, a brief peak, and a sharp fall into the red. All seven traders followed nearly identical trajectories: huge wins followed by complete wipeouts.
- Machi Big Brother went from $44.8M in profit to a $14.9M loss.
- One trader, after 14 consecutive winning trades, turned a $33M gain into a $30.2M loss.
- James Wynn once posted $87M in profits but ended up $21.9M in the red.
- Aguila Trades earned $41.7M, only to lose $37.6M soon after.
- Gambler (@qwatio) shifted from a $26M profit to a $28.8M deficit.
- An anonymous trader on HyperLiquid recorded the steepest fall — over $45M lost.
- Low-stack Degen started with just $125K, reached $43M in profit, and closed with a $180K loss.
The patterns are consistent: extreme leverage multiplies not only returns but also every mistake. One market swing or a single poor decision can erase months — even years — of progress.
When Leverage Turns into Self-Destruction
Analysts at The Kobeissi Letter add that excessive leverage has become one of the leading drivers behind the recent crypto market crash. Since early October, total crypto market capitalization has dropped by more than $1 trillion, with mass liquidations pushing volatility higher. Around 300,000 traders are being wiped out daily.
Experts note that leverage ratios have hit historic highs — meaning any uncertainty or news event could trigger a chain reaction of forced sell-offs.
Leverage, they warn, has turned into a “wild potion” amplifying every price move. Retail traders often blame institutions for manipulation, but in reality, the market’s biggest enemy is itself — traders chasing fast gains with 100x leverage.
