On-chain data has just detected an interesting phenomenon— a well-known trader is increasing leverage again.

The specific situation is as follows:

He opened a 10x leveraged long position on HYPE, currently holding about 15,000 tokens, with an unrealized loss. At the same time, his previously opened 25x leveraged ETH long position has not yet broken even. The total position is worth approximately $13.75 million.

Seeing this, many people's first reaction might be "If the big players are doing this, I’ll follow." But this is precisely the most dangerous mindset.

**Why is high leverage so attractive?**

Simply put, it’s one word: speed. 10x leverage means capital efficiency is increased tenfold, and in a good market, profits can double. But the problem is— when the market moves against you, losses also double. And 25x leverage is even more extreme; just a 3-4% move in the wrong direction can lead to liquidation.

**A few points worth considering now:**

Even professional traders are not guaranteed profits in volatile markets. The current unrealized losses of this big trader are proof of that. High leverage amplifies both gains and risks.

It’s fine to observe the moves of big traders, but don’t blindly follow. The market requires your own judgment; others’ positions don’t determine your returns. More importantly, you need to understand diversification. Concentrating funds in one or two high-leverage positions makes you very vulnerable to volatility.

**What should you really learn?**

It’s not about how he uses 25x leverage, but how he reacts when facing unrealized losses. Leverage is like a double-edged sword— used correctly, it can quickly accumulate profits; used wrongly, you can lose everything overnight. The key is position management— never let a single position occupy too much margin.

What leverage do you usually use when trading? Does anyone advocate for a more aggressive approach, or do you prefer a more cautious strategy? Let’s discuss.