A well-known trader is facing an unrealized loss of $3.36 million on a position involving the cryptocurrency PEPE, having invested heavily with 10x leverage through Hyperliquid.
Current Situation and Risks
The trader entered the position at $0.0000814, but PEPE has fallen to $0.0000720, close to the liquidation price of $0.000020. This downturn reduces his original $27.4 million position, comprising over 378 billion PEPE tokens. The PEPE market is now exposed to significant volatility risks.
Trader's Strategic Steps
To avoid liquidation, the trader partially closed 67 million tokens and injected an additional $3.08 million USDC. These actions recovered nearly $490,000 in losses; however, the market remains unstable, sensitive to any price changes.
Possible Future Scenarios
If the market doesn't stabilize and the position is liquidated, PEPE could plummet to levels last seen in November 2024. Conversely, positive market momentum might help the position stabilize. Investors keenly follow this major player's actions as they could precipitate further price swings.
The ongoing situation with the PEPE position remains uncertain, and traders need to stay vigilant to market changes in order to minimize potential risks.
