This is How Risky it is to trade futures - over $1, 148, 000 Lost in one night

[Fivestar4everMVP]

Going through my X account some hours ago, I came across a tweet by a user with the Monika - crypto Nerb, according to him, he 3x longed pepe with over $1.1 million dollars, apparently, I suppost this was before the entire crypto market went down yesterday, he woke up this morning to find his Binance futures balance looking exactly as the screenshot below..



He then started this thread on X concerning the situation, click the screenshot below to see original post on X, as well as the other posts from the user, and the comments as well



Yes, he was actually going to commit suicide, but according to him, he said what his single mother will go through kept him for some time until a miracle happened...
Binance returned around $180,000 out of the over $1.1 million dollars lost, once again, click the shot for the full tweet on X..



Thank God for atleast now, he has something to hold on to, and continue the crypto journey with..

What are your thoughts on this?
Alot of lessons to learn from this incident, imagine he had rushed to kill himself, and Binance later returned this money? 🤦🤦🤦🤦
SUICIDE HAS NEVER BEEN, AND WILL NEVER BE THE SOLUTION TO ANY PROBLEM IN LIFE, NEVER EVER SEE SUICIDE AS AN OPTION, NO MATTER THE SITUATION.

[MrSpasybo]

What are your thoughts on this?
Alot of lessons to learn from this incident, imagine he had rushed to kill himself, and Binance later returned this money?

I will wait for an update on this case. I cannot guess the reason why all of this user's assets disappeared and then returned. $1M is a huge amount of money, it is equal to the fortune that many people cannot earn in their lifetime.

I suspect that this may be a mistake in Binance's algorithm related to Margin during a time of great volatility in the market. I hope Binance will also have a response to explain this mistake, it would be better if the user received back all of the crypto assets he deserves.

[Faisal2202]

You shared a good story, it gave good lessons and knowledge. It gives us the lesson that we should not seek suicide or something dumb instead we should realize the mistake that we made, I know how hard it would be if I lost my 1-year savings, and I know how much I rely on them. He must have been gone through a lot. But it's a good thing that he got his 17% back. As according to the CryptoBlade Binance is usually set a liquidation ratio of 83%. I don't know if it's true as I did not find anything useful on the Internet. Let me know if that's true.



Overall if it's true then it really gave the victim a good start but I hope he will avoid future trading, I am not a fan of future trading for the very same reason. As $1 million could make him good money in a spot or investing. But yeah to make more money in less time people do future trading. But Still, I suggest not doing it in such a volatile time when the market is so unpredictable.

[Fivestar4everMVP]

What are your thoughts on this?
Alot of lessons to learn from this incident, imagine he had rushed to kill himself, and Binance later returned this money?

I will wait for an update on this case. I cannot guess the reason why all of this user's assets disappeared and then returned. $1M is a huge amount of money, it is equal to the fortune that many people cannot earn in their lifetime.

I suspect that this may be a mistake in Binance's algorithm related to Margin during a time of great volatility in the market. I hope Binance will also have a response to explain this mistake, it would be better if the user received back all of the crypto assets he deserves.

Well, maybe you might need to read the whole thread again, and this time, a bit slower so you under better, the trader's assets did not just disappear, he opened a 3x long on pepe coin on Binance margin market, the trader unfortunately had no stop loss on, and the drop in the market yesterday caused the user's open trade to get liquidated, this was how his asset disappeared, it didn't just disappear, but he lost his trade, luckily, Binance have a mechanism that ensures that only 83 percent of users funds gets liquidated when times like this, so this why he later got 17 percent of the lost funds back.

You shared a good story, it gave good lessons and knowledge. It gives us the lesson that we should not seek suicide or something dumb instead we should realize the mistake that we made, I know how hard it would be if I lost my 1-year savings, and I know how much I rely on them. He must have been gone through a lot. But it's a good thing that he got his 17% back. As according to the CryptoBlade Binance is usually set a liquidation ratio of 83%. I don't know if it's true as I did not find anything useful on the Internet. Let me know if that's true.



Overall if it's true then it really gave the victim a good start but I hope he will avoid future trading, I am not a fan of future trading for the very same reason. As $1 million could make him good money in a spot or investing. But yeah to make more money in less time people do future trading. But Still, I suggest not doing it in such a volatile time when the market is so unpredictable.

+1

You are absolutely correct, Binance is said to have a mechanism that ensures that only 83% percent a user's funds gets liquidiated in times of like this when a user loses a trade completely without a stop loss, so this is why the user received back 17% of the total amount he lost, this is definitely small when compared to how much was lost, but it's still way better than nothing at all, and also, it's a good foundation for the user to start over with.

[electronicash]

yes its also true that you can't get liquidated like all the funds. they call this margin call in forex when they know your funds is not enough if the trends goes the opposite direction then they will exit your position. cutting the loss and save few of your funds.

but then still there is just factors to consider before diving into the market. we know already the market carries the weight since the bull market have been going for months. it only needs a few rounds of missiles from hezbolla that we're going dive this deep.

[Primo1760]

Here I don't understand how the money is refunded after the liquidation. Seems impossible to me. However, if truly returned, it would bring much hope for his life. I want to say here that suicide is a great sin and everything can never be solved by committing suicide. If the person mentioned here had committed suicide, he would have suffered a lot in this Janam and the next Janam. Binance exchange returned his funds he is alive now he can taste his funds but if he had committed suicide he would never have tasted these funds. So before taking any decision one should analyze well and never take any action without taking proper decision. Now I will say futures trading is very risky people who do futures trading will lose money one way or the other. I have never involved myself in futures trading platform but I do trade with spot trading. Because I know future trading are very risky which can take away a lot from life.

[Ambatman]

I thought the 17% was something like a maintenance fee. I have never or had about refunds during liquidation. What I was aware of before was that the remaining 17% are taken as insurance funds which binance use to correct the market like reducing adverse loss and been able to pay people in profits. I will I put it,  it is use in case of high volatility to reduce the impact it would have and removing a deficit which if not corrected would be borne by those in profits. That's why liquidation position are always closed at a price and not keep running because if left the deficit starts accumulating on other members so this insurance fund help to prevent that. I'm only aware that binance only reimburse losses that was some how related to them. I have been liquidated some years ago and wasn't reimburse even a cent

[SamReomo]

I feel bad for that trader but he should have used stop-loss as the amount that he used for trading was too high and in fact it was foolish move to use 3x leverage with such high amount.

$1M is more then enough for anyone to only go with spot trading and earn enough profits even if a coin moves just 1% that's $10000, which is a lot of money.

I'm happy that at least the trader received some money from Binance and he gave up on idea of suicide. Never ever take such risks as crypto trader even with Bitcoin.

[yhiaali3]

This is why I hate and avoid futures trading. It is true that you can make huge profits, but you can wake up to see that your portfolio has been completely depleted.

However, this could be the fault of the Binance exchange since they returned part of the large amount lost to this unlucky trader. This is an indirect admission that it may be Binance's fault due to the extreme market fluctuations that occurred yesterday.

This is a sad story and a harsh lesson for all those who risk large amounts or all of their capital, especially in futures trading.

[Stompix]

Never play with money you can't afford to lose on shitcoins with 3x or 10x!
To make things even worse after the drop the price recovered 25% so which would have saved him from liquidation, or if he as hat much of a gambling-addicted he could have immediately opened a reverse position the moment he went in red, but of course that would have required him to not go full in with all funds.

However, this could be the fault of the Binance exchange since they returned part of the large amount lost to this unlucky trader. This is an indirect admission that it may be Binance's fault due to the extreme market fluctuations that occurred yesterday.

It's not Binance's fault, that's how most exchanges do when liquidating positions, it's the same with traditional forex markets, it's never at 100% because the exchange has to protect itself and the user so usually it's a few safe percentage lower. It's the same as with your collateral on crypto loans, most will liquidate your even at 110% in order to not to risk a flash crash and go below 100%

[Vx1]

Wow this is so amazing, huge losses in cryptocurrency trading. If you are not someone who is used to trading cryptocurrencies, you will definitely be stressed about losing that much money. But of course the person concerned already knows about the risks of trading futures, so he doesn't feel too sad .

[Dr.Bitcoin_Strange]

But this kind of situation is actually questionable because if he totally got liquidated, as Binance has shown, where did the $180k come from? There should be an explanation for how come about the $180k. Did Binance compensate him for his loss or what? I need someone to explain this to me.He got liquidated 100%and later got to see $180k, which came from where? I can't remember when Binance Exchange started to compensate traders when their assets got liquidated. 

Also, this trader was trading with very low leverage (3x) but yet got liquidated. I know that he definitely would have gotten liquidated at some price, but the liquidation price is usually higher or lower with lower leverage. Is he actually sure that the price of the asset he was trading actually got to the liquidation price before he was liquidated? 

[Best]

What are your thoughts on this?
Alot of lessons to learn from this incident, imagine he had rushed to kill himself, and Binance later returned this money?

I will wait for an update on this case. I cannot guess the reason why all of this user's assets disappeared and then returned. $1M is a huge amount of money, it is equal to the fortune that many people cannot earn in their lifetime.

I suspect that this may be a mistake in Binance's algorithm related to Margin during a time of great volatility in the market. I hope Binance will also have a response to explain this mistake, it would be better if the user received back all of the crypto assets he deserves.

Well, maybe you might need to read the whole thread again, and this time, a bit slower so you under better, the trader's assets did not just disappear, he opened a 3x long on pepe coin on Binance margin market, the trader unfortunately had no stop loss on, and the drop in the market yesterday caused the user's open trade to get liquidated, this was how his asset disappeared, it didn't just disappear, but he lost his trade, luckily, Binance have a mechanism that ensures that only 83 percent of users funds gets liquidated when times like this, so this why he later got 17 percent of the lost funds back.

You shared a good story, it gave good lessons and knowledge. It gives us the lesson that we should not seek suicide or something dumb instead we should realize the mistake that we made, I know how hard it would be if I lost my 1-year savings, and I know how much I rely on them. He must have been gone through a lot. But it's a good thing that he got his 17% back. As according to the CryptoBlade Binance is usually set a liquidation ratio of 83%. I don't know if it's true as I did not find anything useful on the Internet. Let me know if that's true.



Overall if it's true then it really gave the victim a good start but I hope he will avoid future trading, I am not a fan of future trading for the very same reason. As $1 million could make him good money in a spot or investing. But yeah to make more money in less time people do future trading. But Still, I suggest not doing it in such a volatile time when the market is so unpredictable.

+1

You are absolutely correct, Binance is said to have a mechanism that ensures that only 83% percent a user's funds gets liquidiated in times of like this when a user loses a trade completely without a stop loss, so this is why the user received back 17% of the total amount he lost, this is definitely small when compared to how much was lost, but it's still way better than nothing at all, and also, it's a good foundation for the user to start over with.

If that is so that they have 83% of user funds liquidated then is a good thing but is best for people who uses huge funds and trades overnight should capitalise the habit of using SL

[BitMaxz]

Suicide is a pretty bad idea you need to be always calm in trading and accept the mistakes.
The mistake he made was that he traded on futures with x3 leverage without thinking that Pepe was too volatile and very risky without stop-loss. That's always the thing you need to keep in mind always set a stop-loss to avoid such lose like this.

He's lucky Binance return some even its a small amount he can able to start again in crypto trading and hope to learn a lot from his mistakes.

[Davidvictorson]

What are your thoughts on this?
Alot of lessons to learn from this incident, imagine he had rushed to kill himself, and Binance later returned this money? 🤦🤦🤦

I shook my head in shame as I muttered the word crypto gamblers while I read through Crypto Nerd tweets knowing that he wasn't the only one crypto bro who would have lost money that day but he was just the bravest of them all to actually acknowledge his loss in the public space. And it is a reminder to the other traders who hold meme coins that this type of fate awaits them if they become careless too by over-leveraging.

In the third screenshot where he said 180k had automatically showed up and he has something to start again, confirms to me that the particular trader is nothing but a gambler who likes to chase his loss. He wants to trade with the 180k again because he feels he will recover the money he already lost.