Trader 0x98eb has suffered a $896,000 loss after his leveraged long position in FARTCOIN was fully liquidated, leaving him with only $84,600 of his original capital. The trader had initiated the trade 75 days ago by selling 9 BTC (worth approximately $981,000 at the time) to fund the leveraged bet.
The liquidation underscores the risks inherent in extended leverage positions on low-liquidity altcoins. By converting a substantial Bitcoin holding into a leveraged long on a meme token, the trader exposed himself to both directional risk and liquidation risk across an extended timeframe. The dramatic erosion of capital—reducing his position to less than 9% of its starting value—highlights how leverage amplifies losses during downturns or consolidation periods.
The incident, documented on X (formerly Twitter) by OnchainLens, serves as a cautionary example for retail traders operating in high-risk segments of the cryptocurrency market where volatility and thin liquidity can trigger cascading liquidations.