PEPE Trader Facing Liquidation Risk, Adds $3.8M to Cover Losses

A cryptocurrency trader has experienced substantial losses in the PEPE token due to a risky leveraged position. Using 10x leverage on their long position through Hyperliquid exchange, this trader incurred a significant loss of $3.36 million as the market declined. While the trader’s position remains open, they are taking steps to mitigate potential losses by depositing additional $USDC funds into their margin account. The situation highlights the inherent risks associated with leveraged trading in volatile crypto markets. On-chain analytics provider Lookonchain shared insights on this incident through a recent X post.