A major trader experienced a rollercoaster in just 24 hours—from an unrealized profit of $26 million dropping directly to a loss of $20 million. The story behind this is worth pondering.

According to public data, this user’s position allocation is quite aggressive. Regarding Ethereum, they held 175,595 coins with 5x leverage, opening at an average price of $3,173; for Bitcoin, they held 1,000 coins with the same 5x leverage, opening at $91,506; the most aggressive was the SOL position, with 250,000 coins at 20x leverage, opening at just $137.

Such configurations can indeed amplify profits when the market is favorable, but once the trend reverses, leverage becomes a double-edged sword. High multiples of leverage mean extremely limited room for price fluctuations—especially with a 20x leverage on SOL, where even a slight pullback can cause a fatal blow.

This case reminds traders: position management is always the top priority. No matter how strong your market judgment, it cannot withstand the consumption of excessive leverage. Profits on paper are just numbers; stop-loss and risk control are the prerequisites for surviving and exiting the market.