On-chain data just captured a shocking scene — the price of LIT has stubbornly fallen below the $2 mark. Even more eye-catching is that a whale account has opened a position with over 3x leverage on this asset, and the unrealized loss has now surpassed $2.84 million.

At first glance, 3x leverage might not seem so scary. But here’s the problem — in a weak market, what appears to be a low multiple is actually the last straw that can break the camel’s back. The recent drop in LIT seems sudden, but there were early signs. When the key support level was broken, it should have been a clear signal to cut losses, but the heavy leverage and increased position size eliminated that possibility. No matter how much capital you have, it can’t withstand such rapid losses.

To put it simply, never adopt a gambler’s mentality in trading. Position management and stop-loss discipline are both essential — they are lessons written in blood and tears by the market. Behind every liquidation is the cost of neglecting risk management. Long-standing traders rely not on luck or a single winning trade, but on respect for risk and unwavering discipline.