Understanding the term
The origin of the term rekt is still unknown, but it is used predominantly within the crypto community. Rekt is a misspelled version of “wrecked”, and it refers to someone who experienced a heavy loss while trading.
For example, if a crypto trader bought ABC Coin at a certain price but, due to unforeseen market conditions, the prices slumped at the next moment, the trader could be in a “rekt” position.
One of the most famous reverse situations occurred in 2018 for all those who held Bitcoins as their price reached its all-time low price point. But it should be noted that after all the rekt positions, the prices always bounce back, just like Bitcoin’s recovery made in 2020 when it reached its new all-time high point.