A recent cryptocurrency trading incident has shed light on the significant financial risks associated with high-leverage trading. An anonymous trader lost approximately $2.788 million on May 17-19, 2025, through operations on Hyperliquid, a decentralized futures exchange. Their losses stem from utilizing leverage of 25x to 40x on Ethereum (ETH) and Bitcoin (BTC). The incident is highlighting the volatility of the cryptocurrency market as well as the potential for cascading effects, particularly in high-leverage trading scenarios. Market expert EmberCN, a blockchain analyst who reported the case, emphasizes the dangers of excessive leverage in this market environment.