In the wild world of crypto, where fortunes can flip faster than a meme goes viral, seasoned investor Jason Choi recently shared a raw and reflective thread on X about two major liquidation events that shook the market. Drawing parallels between the infamous May 2021 crash and the recent October 2025 turmoil, Choi opens up about his personal highs and lows in leveraged trading. If you're into meme tokens or any blockchain assets, this story is a must-read reminder of the risks and rewards in this space. Check out the original thread for the full scoop.

The Build-Up to Disaster: Choi's Journey into Leveraged Trading

Choi, co-founder of Tangent XYZ and a former general partner at The Spartan Group, recounts how after years of successful spot buying and holding crypto, he ventured into leveraged perpetual futures (perps) trading. This move was inspired by a tweet suggesting splitting portfolios into "main" and "degen" accounts for risk management.

He dove deep, chatting with traders, reading books like Market Wizards, and journaling notes obsessively. But sleep took a hit—Choi averaged just 4-5 hours a night for a month, as shown in his sleep tracker.

Initially, it paid off. His account skyrocketed on a hot streak, but as markets stalled with built-up leverage, everything unraveled.

The 2021 Crash: From Boom to Bust

In May 2021, the crypto market tanked over 40% in a week, with Bitcoin plummeting from $58,000 to under $30,000. Choi attributes it to a mix of factors: Elon's Tesla dropping Bitcoin payments over ESG concerns, China's reiterated crypto ban (dubbed "China FUD" in meme circles), and technical patterns like Wyckoff distribution.

His leveraged positions wiped out his account in days, erasing years of gains. Choi vividly recalls closing underwater trades at 3 a.m. during a COVID staycation, with his girlfriend asleep nearby.

This redacted FTX equity curve tells the tale—a sharp rise followed by a devastating drop.

It was his most painful career moment, but it sparked growth. Over the next months, he built frameworks to avoid repeats, learning that leverage isn't needed in volatile crypto, live P&L monitoring clouds judgment, and emotional resilience matters as much as financial margins.

Echoes in October 2025: History Rhymes

Fast-forward to October 2025, and Choi sees uncanny similarities: leverage buildup, price complacency, and an external trigger unleashing chaos. Sleep-deprived again and in a hotel room, it felt like déjà vu. But this time, thanks to his team at Tangent XYZ and a culture of merit-based dissent, they dodged the bullet as a fund.

For meme token enthusiasts, these events hit hard. Meme coins, often fueled by hype and community, amplify volatility during liquidations. Think how pumps turn to dumps when leverage unwinds, wiping out positions in tokens like DOGE or newer viral ones.

Key Takeaways for Crypto and Meme Token Traders

Choi's thread isn't just a war story—it's packed with wisdom:

• Avoid Unnecessary Leverage: In crypto's high-vol environment, spot strategies can suffice without the amplified risks.

• Manage Emotional Margin: Sleep, stress, and biases can derail decisions. Build processes to stay objective.

• Learn from Pain: As Choi quotes, "pain + reflection = progress." Use crashes to refine your approach, whether trading meme tokens or blue-chip crypto.

• Team and Culture Matter: For funds or even solo traders, surrounding yourself with diverse views can save you from blind spots.

In the blockchain space, where meme tokens thrive on rapid cycles, events like these are teachable moments. They push improvements in exchange mechanisms and DeFi oracle designs, making the ecosystem stronger. If October 2025 roughed you up, remember: in crypto, rock bottom often builds the sturdiest foundations. Stay informed, trade smart, and keep building.