Apr 15, 2026
Kate, from Toronto, Ontario, called into The Ramsey Show with a story that made co-hosts George Kamel and Ken Coleman cringe.
Her husband had borrowed $250,000 from their home equity line of credit (HELOC) — without telling her — and put it all into cryptocurrency. Then, in what he later said was a mistaken button click, the money vanished.
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"He accidentally pressed the 'sell short' button instead of the 'sell' button, apparently," Kate explained to the finance experts.
After several days passed and no money appeared in their bank account, the truth came out: the funds had been liquidated. They were gone.
"I don't know what's worse," Kamel said. "If he didn't know what he was doing or if he knew what he was doing. Both are frightening scenarios (1)."
What 'short selling' actually means and why it matters
Most people who buy crypto or stocks are going "long" — they buy an asset, hold it, and hope the price rises. Short selling is the opposite.
According to the U.S. Securities and Exchange Commission (SEC), a short sale involves selling an asset you do not currently own by borrowing it at the current price and later buying it back to return to the lender — ideally, at a lower price, allowing the trader to pocket the difference. But if the price rises instead, losses can be massive.
In the already-speculative world of crypto, layering on a short sale position is, as Kamel put it, "double gambling."
This is a critical distinction for anyone dabbling in crypto platforms. The SEC warns that short selling can expose investors to theoretically unlimited losses, unlike buying an asset outright, where the maximum loss is the amount invested (2).
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Buttons like "sell short" or "short position" do not mean the same thing as a standard "sell" order. Not knowing the difference before trading (if that's really what this man did) can have serious — and potentially very costly — consequences.
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Why borrowing against your home to invest is so dangerous
Kate's situation illustrates one of the most hazardous financial moves a homeowner can make.
The Financial Industry Regulatory Authority (FINRA) explicitly warns that using a home equity loan or line of credit to invest can be extremely risky and may jeopardize your financial stability. That's because if the investment loses value and you can't repay the loan, you could lose the collateral — in this case, your home.
It's a two-sided risk. On one side, there's the investment risk: cryptocurrencies are highly volatile and can experience large price swings in short periods of time. On the other, there's the loan itself, which must still be repaid with interest regardless of how the investment performs. FINRA notes that failing to repay a loan secured by home equity can ultimately lead to foreclosure (3).
"He's like a degenerate gambler if he puts his entire house and family on the block to try to get rich quick with crypto," Kamel said.
What you should know before touching crypto
As for Kate's $250,000 question — whether any money might be recovered — the hosts suggested contacting the crypto platform directly and asking specific questions: Are all positions closed? Is there any remaining margin exposure? Has the loss been fully realized, or could balances still change? What exactly is owed, to whom, and under what terms?
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But Kamel and Coleman were clear that their advice wasn't necessarily anti-crypto — it was anti-recklessness. Several key principles emerged:
Never borrow to speculate. Using home equity or other borrowed money to invest in volatile assets magnifies risk. If the investment fails and you can't repay, you could lose both the investment and the asset used as collateral.
Know the terminology before you trade. Kate's husband claims he didn't understand what a "sell short" button did. Short selling can create losses that exceed the original investment, a risk made even greater by crypto's volatility.
Only use money you can afford to lose entirely. Crypto is a high-risk speculative asset, not a financial foundation. Emergency savings, paying down debt, and retirement contributions should generally come first.
Transparency with a partner is non-negotiable. Any major financial move — especially one secured by shared assets — should be discussed and agreed upon in advance. Hiding large financial decisions can turn a financial mistake into a relationship crisis, and it constitutes financial infidelity.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
YouTube (1); Investor.gov (2); Financial Industry Regulatory Authority (3)
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With a writing and editing career spanning over 13 years, Emma creates and refines content across a broad spectrum of industries, including personal finance, lifestyle, travel, health & wellness, real estate, beauty & fitness and B2B/SaaS/tech. Her versatility comes through contributions to high-profile clients like Moneywise, Healthline, Narcity and Bob Vila, producing content that informs and engages, along with helping book authors tell their stories.
