it's recursive leveraging using multiple different market makers that are giving you further leveraged bets on already leveraged assets

> it's recursive leveraging using multiple different market makers that are giving you further leveraged bets on already leveraged assets

This is approximately what Bill Hwang was indicted for doing [1].

[1] https://www.wsj.com/articles/archegos-founder-and-cfo-charge...

You don't suppose he got in trouble with the law because he was doing it with other people's money (and not telling them that's what he was doing)?

What do you think leveraging is? You are using your deposit (ETH) to increase exposure to an asset (more ETH). The process is just more manual compared to a traditional market because crypto.