A big-time crypto investor (often called a “whale”) is in a risky situation after making a high-stakes bet on the PEPE meme coin using 10x leverage on the Hyperliquid exchange. If PEPE’s price keeps dropping, they could face massive losses, potentially leading to a domino effect that shakes up the entire market.
Whale Places $27.53M PEPE Bet – But It’s Not Going Well
A well-known crypto analyst, Ai, revealed that this whale invested a huge $27.53 million into a 10x leveraged long position on PEPE. In simple terms, they borrowed money to increase their potential profits—but also their risks.
The problem? The trade isn’t going as planned. So far, the whale has already racked up an unrealized loss of $3.238 million. If PEPE’s price drops to $0.005219, their position will be automatically liquidated, meaning their funds would be forcibly sold off at a loss.
To prevent this, the whale has added another $3.8 million in margin (extra funds to keep the trade alive). But this move shows they are struggling to hold their position, and if PEPE keeps falling, they might have to add even more money—or risk losing it all.
Why This Matters
Using 10x leverage means every small price movement is amplified. If PEPE drops further, the exchange (Hyperliquid) will step in and sell the whale’s holdings, which could trigger a chain reaction where other traders also get liquidated. This kind of “liquidation cascade” has happened before, and it often leads to sudden, sharp price crashes.
For example, in May 2021, a series of liquidations during a Bitcoin crash wiped out over $8 billion in traders’ positions in just 24 hours. Similarly, in June 2022, the collapse of Terra (LUNA) triggered a wave of sell-offs that led to major crypto firms like Celsius and Three Arrows Capital going bankrupt.
Can The Whale Manipulate The Market?
Big investors like this whale have the power to influence market movements. By continuously adding margin to their position, they might be trying to hold PEPE’s price up and prevent a sell-off. However, if they eventually give up and exit their position, it could cause panic among smaller investors, making the price drop even faster.
PEPE’s volatility makes this situation even riskier. Unlike major cryptos like Bitcoin and Ethereum, meme coins mostly rely on hype and social media trends rather than actual value. If negative news spreads or traders lose confidence, prices can tumble quickly.
PEPE’s Price is Already Dropping
As of now, PEPE’s price has fallen over 5% in the last 24 hours, trading at around $0.00000721. If it keeps edging toward the whale’s liquidation point, other traders might start selling early to avoid losses, which could lead to a bigger crash.
Another Trader Faces a Similar Situation With Ethereum
This isn’t just happening with PEPE. A popular crypto trader known as CBB (a Key Opinion Leader on X) has also made a risky move, taking a 10x leveraged long position on Ethereum (ETH) worth $2.11 million.
They bought ETH at $2,730 but are already facing a $1.035 million loss because prices have dropped. However, their liquidation price is much lower at $1,167.8, meaning they have a bit more breathing room than the PEPE whale.
The Bottom Line
These cases show how dangerous high-leverage trading can be, especially in a volatile market. If these big traders get liquidated, it could spark panic selling, causing even bigger price drops—not just for PEPE but for other cryptos as well.
Crypto has seen major liquidation events before, and history shows that once these sell-offs begin, they can snowball fast. The coming days will be crucial for PEPE and the broader market.
Would you take a risk like this, or is it too dangerous? Let’s discuss!
