An anonymous trader who changed his Twitter handle to @kavaisscam revealed his heart-breaking story of a liquidated long position. Here’s why he chose to go all-in on Kava Network (KAVA)—and then quickly regretted it 20 minutes later.
On April Fool’s Day, the trader took to Twitter to tell the tale of his trading experience. On the “major” news of Kava Network’s progress, he allocated his whole portfolio to a KAVA/USDT position: “I am shaking.” I just lost all of my portfolios due to the @kava platform’s April Fool joke. Here’s how it went down. I know it’s April 1st, but I noticed the tweet about the announcement. I double-checked the “@” to be sure it was legitimate. It is, indeed, an official profile. That is significant news.
This statement was most likely regarding an apparent partnership between Kava Network (KAVA) and Tesla, the electric car giant. According to screenshots uploaded on Crypto Twitter, the message was labelled as a hoax 32 minutes after it was published.
However, when KAVA began surging from $4.53, the trader decided to initiate a 40x long on his $8,400 position. The price of KAVA then skyrocketed to over $5 before quickly retracing its steps once the statement was labelled as a prank.
As KAVA fell below $4.65, the trader got notification from Binance (BNB) that his KAVA/USDT transaction had been liquidated owing to an inadequate margin balance.
The trader who lost his whole account after being one step away from a $600,000 profit highlighted the importance of using stop-losses while trading with leverage.
A few hours later, he even added a clarification stating his prior statements were also a joke—but Binance’s letter does not seem to have been changed.
