Suppose you want to long AADA, and you have 300 tokens in your wallet.
Loan request #1: If 1 AADA = 1.3 ADA, you could submit a Loan request asking for 200 ADA against your 300 AADA.
Loan request #2: When your loan is funded, use the 200 ADA to buy 150 AADA and submit another Loan request for 100 ADA against your 150 AADA.
Loan request #3: After you receive the 100 ADA, you can sell it for another 75 AADA and use the remaining tokens to borrow another 50 ADA.
If the price increases significantly (e.g., +30%), you can return each loan in reverse order, selling the AADA tokens and keeping a hefty profit.