The amount doesn't change anything to me.

Instead of spending your coins (buying fiat to pay for things) you decided to enter a fiat trade (shitcoining).

There is only 2 way to justify this.

1) You wanted to go leverage long on Bitcoin and did not mind to lose custody for this.

2) You wanted to avoid some kind of taxable transaction from buying fiat with coins and the loan allowed for this.

I can understand #1 and it make sense as long as you're honest with yourself. You did not mention #2 so I have to assume it wasn't the reason.

All I'm saying is that you guys use these collaterized loans as a way to go leverage, not simply unlock liquidity and that to me is shitcoinery disguised as Bitcoin.