Paper trading with 1000x leverage triggers massive liquidations, over $20 million in margin losses

Huo Xing Finance reports that, according to TradingBeats monitoring, since trading opened on October 10 at 22:00, Papertrade has seen 7,962 unique addresses open positions, with 5,836 of these using 1,000x leverage—accounting for approximately 73.3%—and collectively establishing 61,222 positions with 1,000x leverage. The risks of high leverage have rapidly materialized: 4,395 addresses experienced at least one 1,000x position liquidation, representing 75.3% of all addresses using 1,000x leverage; a total of 12,657 1,000x positions were liquidated, resulting in a cumulative loss of approximately $20.0771 million in isolated margin. Of this, BTC positions accounted for about $8.0006 million and ETH positions for about $12.0764 million. Across the entire platform during the same period, 4,861 addresses experienced position liquidations, with a total of 14,158 positions liquidated and an aggregate isolated margin loss of approximately $23.1162 million. The 1,000x positions contributed about 89.4% of all liquidations and 86.9% of total margin losses. The median holding time from opening to liquidation for liquidated 1,000x positions was only 7 minutes and 35 seconds. According to official documentation, a 1,000x leveraged position may be liquidated and lose its entire isolated margin upon a counter-movement of approximately 0.052% in price.