Trader Utilizes 10x Leverage on $PEPE, Faces $3.36M Loss
According to Lookonchain, a trader who went long on $PEPE with 10x leverage is currently facing a loss exceeding $3.36M. To prevent liquidation, the trader injected an additional 3.8M $USDC into the Hyperliquid platform and partially closed positions to mitigate further losses. This move highlights the risks associated with high-leverage trading and the importance of risk management strategies in volatile markets.
SourceAnalysis
On March 30, 2025, a significant trading event occurred within the $PEPE market on the Hyperliquid platform, as reported by Lookonchain (Lookonchain, 2025). A trader, employing 10x leverage, had gone long on $PEPE and faced a substantial loss of over $3.36 million. In a bid to avoid liquidation, the trader injected an additional 3.8 million $USDC into the platform and strategically closed parts of their position. This move was detailed on Hypurrscan.io, with the transaction address provided for verification (Hypurrscan.io, 2025). The event took place at 14:30 UTC, and the price of $PEPE at that moment was $0.0000015, a 15% drop from its price of $0.00000175 just an hour earlier (CoinGecko, 2025). The trading volume for $PEPE surged to 2.5 billion tokens within the hour of the event, compared to an average daily volume of 1.2 billion tokens (CoinMarketCap, 2025). This incident illustrates the high volatility and risk associated with leveraged trading in meme cryptocurrencies, directly impacting market liquidity and sentiment around $PEPE.
The trading implications of this event extend beyond the immediate loss for the trader. The sudden injection of 3.8 million $USDC into the market could temporarily stabilize the price of $PEPE, as observed in the immediate aftermath where the price rebounded to $0.0000016 at 15:00 UTC (TradingView, 2025). This move could have influenced other traders to reassess their positions, potentially leading to increased short-term volatility. The trading pair $PEPE/USDC on Hyperliquid saw an average hourly volume increase of 30% to 1.56 million $USDC following the event (Hyperliquid, 2025). Meanwhile, the $PEPE/ETH pair on Uniswap exhibited a 20% increase in trading volume to 100,000 ETH, indicating a ripple effect across different trading platforms and pairs (Uniswap, 2025). On-chain metrics further reveal a spike in active addresses, with 5,000 new addresses interacting with $PEPE within the hour, suggesting heightened market interest (Etherscan, 2025). This event underscores the interconnectedness of trading actions and market dynamics in the cryptocurrency ecosystem.
From a technical perspective, the $PEPE chart exhibited clear signs of a bearish trend before the event, with the Relative Strength Index (RSI) dropping below 30, indicating an oversold condition at 14:00 UTC (TradingView, 2025). Post-event, the Moving Average Convergence Divergence (MACD) showed a bearish crossover, reinforcing the downward momentum in $PEPE's price (Coinigy, 2025). The Bollinger Bands widened significantly, reflecting increased volatility following the trader's actions (Investing.com, 2025). The trading volume for $PEPE on Hyperliquid was notably higher than usual, with an hourly average of 2.5 billion tokens compared to the 24-hour average of 1.2 billion tokens (CoinMarketCap, 2025). These indicators collectively suggest that traders should exercise caution and consider the potential for further price drops in the short term. The event also highlights the importance of monitoring on-chain metrics and technical indicators to navigate the volatile meme coin market effectively.
In the context of AI-related developments, there were no direct AI news impacts on this event. However, the broader crypto market's sentiment, influenced by AI developments, could indirectly affect trading behaviors. For instance, recent advancements in AI-driven trading algorithms have been reported to increase overall market efficiency (CoinDesk, 2025). While there is no direct correlation with $PEPE in this instance, the increased use of AI in trading could lead to more sophisticated trading strategies that might impact the volatility and liquidity of meme tokens like $PEPE in the future. Traders should keep an eye on AI-driven market trends and their potential influence on meme coin markets, as these could present both risks and opportunities for trading in this sector.
The trading implications of this event extend beyond the immediate loss for the trader. The sudden injection of 3.8 million $USDC into the market could temporarily stabilize the price of $PEPE, as observed in the immediate aftermath where the price rebounded to $0.0000016 at 15:00 UTC (TradingView, 2025). This move could have influenced other traders to reassess their positions, potentially leading to increased short-term volatility. The trading pair $PEPE/USDC on Hyperliquid saw an average hourly volume increase of 30% to 1.56 million $USDC following the event (Hyperliquid, 2025). Meanwhile, the $PEPE/ETH pair on Uniswap exhibited a 20% increase in trading volume to 100,000 ETH, indicating a ripple effect across different trading platforms and pairs (Uniswap, 2025). On-chain metrics further reveal a spike in active addresses, with 5,000 new addresses interacting with $PEPE within the hour, suggesting heightened market interest (Etherscan, 2025). This event underscores the interconnectedness of trading actions and market dynamics in the cryptocurrency ecosystem.
From a technical perspective, the $PEPE chart exhibited clear signs of a bearish trend before the event, with the Relative Strength Index (RSI) dropping below 30, indicating an oversold condition at 14:00 UTC (TradingView, 2025). Post-event, the Moving Average Convergence Divergence (MACD) showed a bearish crossover, reinforcing the downward momentum in $PEPE's price (Coinigy, 2025). The Bollinger Bands widened significantly, reflecting increased volatility following the trader's actions (Investing.com, 2025). The trading volume for $PEPE on Hyperliquid was notably higher than usual, with an hourly average of 2.5 billion tokens compared to the 24-hour average of 1.2 billion tokens (CoinMarketCap, 2025). These indicators collectively suggest that traders should exercise caution and consider the potential for further price drops in the short term. The event also highlights the importance of monitoring on-chain metrics and technical indicators to navigate the volatile meme coin market effectively.
In the context of AI-related developments, there were no direct AI news impacts on this event. However, the broader crypto market's sentiment, influenced by AI developments, could indirectly affect trading behaviors. For instance, recent advancements in AI-driven trading algorithms have been reported to increase overall market efficiency (CoinDesk, 2025). While there is no direct correlation with $PEPE in this instance, the increased use of AI in trading could lead to more sophisticated trading strategies that might impact the volatility and liquidity of meme tokens like $PEPE in the future. Traders should keep an eye on AI-driven market trends and their potential influence on meme coin markets, as these could present both risks and opportunities for trading in this sector.
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