Lookonchain revealed that Andrew Kang (Co-Founder of the crypto-focused venture capital firm Mechanism Capital) lost over $430,000 in a single day after the recent crash of the digital asset market liquidated his long positions.
Kang’s positions opened on August 18 included Bitcoin (BTC), Ethereum (ETH), and Arbitrum (ARB), as he traded with up to 100x leverage.
However, he lost all 14 long trades that day due to the market crash and his risky strategy. The total losses equaled approximately $432,000.
Andrew Kang went long $BTC, $ETH, and $ARB after the market crash on Aug 18.
But every long position was liquidated because he used up to 100x leverage.
He was liquidated 14 times in total and lost ~$432K in only 1 day. pic.twitter.com/6P9j6SRDK1
— Lookonchain (@lookonchain) August 21, 2023
Some X (Twitter) users commented below the post that trading with such high leverage is equal to gambling, warning investors to be more careful when entering the ecosystem.
As CryptoPotato previously reported, the crypto market crash, more specifically bitcoin’s plunge to as low as $25,300 at the end of last week, triggered nearly $1 billion in liquidations.
Still, the largest single liquidation took place on an ETH-BUSD trade on Binance, wiping out a trader for over $55 million.
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