This ETH pullback instantly wiped out a whale’s rolling long position. Now, the remaining position in his account is just $42 away from liquidation—literally dancing on the edge of a cliff.

Here’s what happened: this guy started with $500,000 in principal and began rolling long ETH from $2,840. When ETH spiked to $3,200 the other day, his account ballooned to $3.34 million. But there’s a fatal flaw in this strategy—with each profit, the liquidation price moves up too, eventually reaching $3,000.

Then, in the early hours today, ETH plunged below $3,000, triggering two liquidations in a row. The $3.34 million account has now shrunk to $730,000, with nearly all the profits from this round wiped out. Worse yet, the remaining position is now just $42 away from being liquidated again.

Leverage magnifies gains, but it also amplifies risk. One market reversal can instantly wipe out everything you’ve earned.