One trader's $35 million short position got wiped out in a single liquidation event on a major exchange, a stark reminder of what happens when leverage meets volatility. The crypto market doesn't forgive reckless bets—especially when you're riding on borrowed money during sharp price swings. This kind of massive liquidation isn't just about individual losses; it ripples through the market, triggering cascading liquidations and amplifying price movements. The lesson here is brutal but simple: extreme leverage in crypto is a double-edged sword. When momentum shifts against you, even a small price movement can blow through your entire position. Smart traders know that surviving the market long-term beats trying to maximize short-term gains through risky leverage plays.