He mortgaged his house for a memecoin. It went -96% in 48 hours.

GM. This is Dumb Money Daily, the newsletter that tracks how regular people light their savings on fire so you can learn from their mistakes.

Spoiler: you won't learn from their mistakes. Nobody ever does. That's kind of the whole point.

Today was a bloodbath. $1.7M in combined losses across Reddit, crypto Twitter, and one very sad Discord server that no longer exists.

Four stories stood out. All of them are painful. One of them involves a second mortgage.

Here's what we've got today:

🏆 A second mortgage for a memecoin. 96% down in 48 hours.

📉 Naked calls on earnings day. "It's priced in." (It was not.)

⚡ 125x leverage from a TikTok ad. Liquidated in 11 minutes.

🏦 A DeFi protocol with a function literally called rugPull().

🤣 Dumb memes from the trenches.

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

Today's winner cleared the bar by a mile. And by "mile" we mean $312,000.

Here's the setup.

A Redditor named u/diamondhands_4ever saw a "due diligence" post on r/wallstreetbets about a memecoin called $ELONDOGE420.

The DD was three sentences long. It contained the phrase "trust me bro." It had three rocket emojis. That was the entire thesis.

He took out a second mortgage on his house to buy it.

Not a small position. Not "fun money." A 7.4% APR second mortgage. Every dollar of it.

The dev team turned out to be one guy in a Discord server. He deleted his account 48 hours later.

The coin dropped 96% in two days.

Remortgaged the house at 7.4% APR to go all-in on $ELONDOGE420 after seeing a "DD" post with 3 rocket emojis. The dev team turned out to be one guy in a Discord who deleted his account.

My response? "Still bullish. This is just the shakeout before the moonshot."

Wife is at her mom's. She took the dog.

⬆ 12.4k 💬 3.2k 🏆 847 awards

The best part? His follow-up comment. Posted six hours after the rug pull:

"Still bullish. This is just the shakeout before the moonshot."

Brother. There is no moonshot.

The dev is in Bali. Your mortgage payment is due on the 1st.

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

Let's run through the tape.

Casualty #1: The "It's Priced In" Guy

There's a phrase that echoes through every trading forum right before someone gets destroyed. That phrase is "it's priced in."

Here's what u/options_r_ez did.

He sold 200 naked call contracts on a major stock. Thirty minutes before the earnings report.

His thesis? The earnings were priced in. The stock wouldn't move.

It moved.

The company announced a surprise acquisition. Stock gapped up 40% after hours.

His 200 naked calls went from free money to an $89,000 hole in about four minutes.

He posted the margin call notification to Reddit with the caption: "how do I undo a trade."

You can't. That's kind of the whole thing about trades.

200 naked call contracts. 30 minutes before a surprise acquisition announcement. Stock gapped up 40% after hours.

Posted the margin call screenshot with the caption: "how do I undo a trade."

Brother, the market doesn't have Ctrl+Z.

⬆ 6.3k 💬 1.8k 💀 F in chat

Casualty #2: The TikTok Leverage Enjoyer

This one's quick because the trade was quick. Eleven minutes quick.

u/crypto_prophet_2024 saw a TikTok ad. A guy in a rented Lamborghini. Sunglasses. Pointing at the camera.

The pitch: "This coin will 1000x. Trust me bro."

Our guy did trust him. He went 125x long on a token called $VIBECOIN.

For context: 125x leverage means a 0.8% move in the wrong direction wipes you out completely.

The coin dropped 2% in the first ten minutes. He was liquidated in eleven.

The whitepaper? One page. Single paragraph. And we quote the entirety: "Decentralized vibes."

That's it. That was the whole investment thesis. $54,200, gone.

"I thought I was early. Turns out I was just wrong, very fast."

⬆ 9.1k 💬 2.4k 🙌 salute

Casualty #3: The "Guaranteed Yield" Retirement Fund

This is the one that actually hurts to write.

u/FIRE_by_30 had a plan. Save aggressively. Retire by 30. The whole FIRE playbook.

One problem: he found a DeFi protocol called SafeYield offering "guaranteed 40% APY."

Here's what the red flags looked like:

The rugPull() function was called.

His balance went to $0. He's 28. He's starting over.

The protocol's website now redirects to a blank page.

"I didn't read the contract. I just saw 40% APY and my brain turned off."

"I am 28 years old. My net worth is now $0. The FIRE plan is just fire now."

⬆ 11.2k 💬 4.1k 😭 pain

We track the data because the data is funnier than anything we could make up.

The correlation between rocket emojis and portfolio destruction remains undefeated.

We've been tracking it for months. Every time someone posts more than 3 rockets in their DD, the average outcome is a 90%+ loss. More reliable than any technical indicator on the market.

The best part of any loss thread isn't the screenshot. It's the comments section.

Here are today's greatest hits.

Translation: the copium supply is at all-time highs. The self-awareness supply remains at zero.

Every newsletter needs a meme section.

Ours just hits different when you're reading it from a portfolio that's down 96%.

If you laughed, you're coping.

If you didn't laugh, you're probably in the screenshots.

See you tomorrow. Same losses. Different people. Exact same mistakes.