XRP Trader Doubles Down on $2 Million Short with 20x Leverage as Losses Mount

A cryptocurrency trader has taken on a high-risk short position in XRP, using 20x leverage to bet against the token's price. The trader initially entered the short at around $1.5453, committing $100,800 in margin to support the leveraged position. At the time of writing, XRP is trading at $1.5577, leaving the position about $15,300 in the red.

Instead of cutting their losses, the trader has expanded exposure by adding $1.06 million to the short, bringing the total notional value to approximately $2.02 million. The liquidation price for this position sits at $1.6408, a level that would wipe out the entire margin if reached.

Crypto analyst Xaif Crypto has publicized the trade on social media platform X, describing it as a 'major risk.' Some community members have criticized the strategy, with one trader questioning why the position was not closed when XRP dropped to $1.35.