Recently, the Crypto Assets market has staged a shocking scene, highlighting the enormous risks of shorting strategies. An investor invested only 20 units of capital to engage in shorting operations, but due to unwillingness to set a timely stop loss, they continued to add Margin, ultimately incurring a loss of up to 1200 units. This painful lesson has sparked widespread discussion in the market.

Compared to going long, the risks of a shorting strategy are indeed much higher. When going long, theoretically, one could achieve returns of hundreds or even thousands of percentage points. However, the profit potential for shorting is capped at within one hundred percent, usually only profiting from a decline of several percentage points. This severe imbalance in risk-reward ratios means that shorting strategies need to be executed with extra caution.

What is even more concerning is that shorting also faces the threat of sudden surges. Recently, the COAI coin experienced a fierce increase, which could lead to a large number of short sellers getting liquidated. In this situation, investors may not only lose all their principal but also incur debts that exceed their initial investment.

These events remind us again that trading in the Crypto Assets market, especially when employing shorting strategies, requires a full understanding of the high-risk nature involved. Investors should develop strict risk management strategies, set reasonable stop loss points, and remain vigilant to the market's volatility. At the same time, it should also be recognized that, compared to the high-risk shorting operations, adopting a long-term holding or opportunistic buying strategy may be more suitable for most investors.

Overall, the high volatility of the Crypto Assets market brings both opportunities and significant risks. Investors need to maintain a clear mind when participating, reasonably assess their risk tolerance, and always adhere to the principles of rational investing.