He Looped NFT Leverage Three Times Right Before the Art Scandal

Take at look at this stack of papers covered in black marker:

What you're looking at are the 750 White House files President Trump quietly "redacted" behind closed doors.

But what happened next was even more peculiar…

You see, directly after deleting federal files that had been in place since Jimmy Carter was in office…

President Donald Trump wrote a $300 million check to a controversial company located in Foothill Ranch, California.

Strangely enough, he didn't utter a single word about it to the cameras. Even more fascinating, it turns out, Trump's not acting alone…

If you follow the money trail…

Jeff Bezos, Warren Buffett, Bill Gates… even an up-and-coming tech titan who the late Charlie Munger referred to as, "the new emperor of the world"… have all poured billions into the same area.

Click here for the full story, including the name of the company Trump just invested $300 million in — absolutely free.

Every day we crown one person who made the single worst financial decision on the internet.

Today's winner didn't just take out one leveraged loan. He looped it three times.

Here's the setup.

u/jpeg_leverage_king owned a blue-chip NFT. He borrowed against it through a peer-to-peer NFT lending protocol.

Then he used that loan to buy another NFT from the same collection. Then borrowed against that one too. Then did it a third time.

He borrowed against an NFT, then used the loan to buy more of the same collection, three times over.

Three NFTs, all from one collection, all serving as collateral for loans that funded the purchase of the next one. A leverage loop with no cash cushion anywhere in it.

The project's lead artist was revealed to have used AI-generated art for several "hand-drawn" traits the community had paid a premium for.

The floor price crashed 84% within hours of the accusation going viral.

All three loans breached their liquidation thresholds within the same afternoon. All three NFTs were seized by lenders. $103,400, gone.

Here's what makes this hall-of-fame level: all three loans were with the same lending protocol, using the same collection as collateral. One bad headline about the collection didn't just hurt one position — it triggered all three liquidations simultaneously.

Not everybody can be Loss of the Day. But these two gave it a real shot.

There's a strategy sold as "boring income for patient people." That strategy is "the wheel" — sell puts, get assigned if it drops, sell covered calls until it's called away.

u/wheel_strategy_wendy sold a cash-secured put on a stock, planning to roll it forward before earnings the way the strategy usually recommends.

He forgot to roll it. The put expired in the money the day before the report, and he got assigned the shares instead.

The earnings report missed badly, and the stock gapped down 26% while he was holding shares he only owned because he forgot one calendar reminder.

$34,600, gone, on a strategy he'd been running "safely" for eight months.

Quick math on the wheel strategy for non-options people: selling a cash-secured put means you agree to buy 100 shares at the strike if the stock falls below it. It's "safe" only if you're comfortable holding the stock through whatever comes next — including a report you didn't plan to hold through.

There's a chart pattern that looks like a fresh start and almost never is: the reverse stock split.

u/reverse_split_believer saw a beaten-down stock complete a 1-for-20 reverse split and bought in immediately, reasoning that a "cleaner chart" meant the worst was over.

A reverse split doesn't fix a company's problems. It just changes the number on the ticker so the stock doesn't get delisted for trading as a penny stock.

The stock kept bleeding, dropping another 45% over the next two weeks, the same as it had been doing before the split, just with fewer, more expensive-looking shares.

$19,700, gone, on a rally that was never coming.

He's since learned that reverse splits are usually a symptom, not a cure.

The best part of any loss thread isn't the screenshot. It's the comments. Here are today's greatest hits.

Translation: leverage loops, skipped calendar reminders, and cleaner-looking charts all have the same thing in common. None of them change what's actually happening underneath.

New losses, fresh copium, same dosage.