A number of epic liquidations took place on April 1 due to poor risk management by altcoins traders
An anonymous trader who changed his Twitter alias to @kavaisscam has shared his sad story about his long liquidation. Here’s why he decided to go all-in on Kava Network (KAVA) and almost immediately regretted it 20 minutes later.
Leveraged trading becomes dangerous on April 1
The trader has taken to Twitter to share the story of his trading experience on April Fools’ Day. He allocated his entire portfolio to a KAVA/USDT position on the “big” announcement of Kava Network’s progress:
I’m shaking . I just lost my entire portifio to @kava_platform’s April Fools. Here’s how it went. I know it’s April 1st but I saw that announcement tweet, I’m checking the “@” to make sure it’s official. Yes this is the official profile. This news is (…) great.
Most likely, this announcement was about an alleged collaboration between Kava Network (KAVA) and Tesla electric vehicles giant. As per the screenshots shared on Crypto Twitter, the announcement was marked as a joke 32 minutes after publication.
However, the trader decided to go 40x long on his $8,400 position as KAVA started to pump from the $4.53 level. Then KAVA soared to nearly $5 and pulled back in no time after the announcement was marked as a joke.
As KAVA dropped to $4.65, the trader received a letter from Binance (BNB) informing him that his KAVA/USDT position was liquidated due to an insufficient margin balance.
The trader who lost his entire portfolio being just one step away from a $600,000 profit reiterated that stop-losses should always be used when trading with leverage.
A few hours later, he even posted the disclaimer that his previous words were also a joke—but the letter from Binance does not look edited.
Not only kava
Some traders on Crypto Twitter have revealed that they have fallen into similar tricks with different assets. Namely, Solana-based early-stage Kineko (KKO) protocol released an announcement regarding the alleged endorsement of six-time Ballon d’Or winner Lionel Messi.
Trader and investor @AltcoinVentures posted a thread to display his liquidated $170,000 long ONEUSDT position.
He opened it a year ago on April 1 following the “announcement announcement” of the Ethereum Harmony (ONE) killer.
