Investor increases position in XPL despite suffering million-dollar losses

I just found out that Huang Licheng, an apparently reckless investor, has decided to increase his position in XPL to $13.3 million. What madness! He has accumulated 8.8 million units at an average price of $1.55 each.

The most surprising thing is that he is enduring brutal losses: $381,000 per unit, totaling approximately $14.06 million in the red. I wonder if this investor knows something we don’t or is simply falling into the psychological trap of “averaging down”.

This strategy seems extremely risky to me. While some small investors are crying over losing $500, this guy is sinking millions more into an asset that is clearly on a downward trend. Will this be a master move or the classic mistake of holding onto a failed investment?

Personally, I would never put that much money into a single asset with such a track record of losses. Maybe they have insider information or simply too much money to worry about these losses. In any case, their move goes against all risk management logic that I know.