High-Leverage Rolling Strategy Leaves Huang Licheng Vulnerable to Market Pullbacks

BlockBeats reported on August 30 that on-chain analyst Yu Jin said Huang Licheng’s high-leverage rolling strategy depends heavily on a one-sided market rally. According to BlockBeats On-chain Detection, if the market turns choppy or pulls back, even a slight decline could trigger stop-loss orders and forced deleveraging, causing ongoing losses in the account. Over the past few days, BTC and ETH have both traded at elevated levels with little overall price movement, but Huang’s account balance has fallen from $11.15 million to $8.8 million, a drop of about $2.35 million, mainly due to frequent stop-loss reductions during minor price pullbacks. His current long positions are worth about $114 million, including roughly $100 million in ETH longs opened at $2,463 with a liquidation price of $2,307. If ETH continues to rise in a one-way move, leverage could further amplify gains. If prices remain range-bound or turn lower, he may be forced to reduce positions again and give back about $11 million in gains from the earlier rally.