Don't know whether you agree with this but this scenario is caused mainly by people who bought bitcoins with the money that they don't actually own. That means they either borrowed money from banks or even gamble away the future fund they allocated for their kids' education and stuff like that. This mostly comes from hedging and leveraging their position. Therefore I'm not surprise, these are the first group of people who get targeted by these fudster.
Always, never put your money into something you can't afford to lose. There is no guarantee of 100% return of investment and people need to realize that.
A lot of money has been made from leverage positions. The pitfalls associated with leveraged trades are well known - small unfavourable movements can wipe out your principal. People still choose to make leveraged trades.
Statically speaking more money has been lost from leveraged positions then has been earned by them. Even if the price of whatever you are trading eventually goes in your favor, it only needs to go against you temporarily in order for you to lose your entire investment.
