Machi Big Brother Risks Massive Ethereum Liquidations Amid Market Downturn - Crypto Economy

TL;DR

• Trader “Machi Big Brother” holds a 25x leveraged long position on ETH valued at $10.1 million.
• With ETH dropping below $3,900, his position faces Ethereum liquidation risk if the price falls to $3,803.
• The trader is using 95.72% of his margin, with over $404,000 at immediate risk of being liquidated.

The well-known investor and “whale” Jeffrey Huang, alias “Machi Big Brother,” doubled his bullish bet on Ethereum, putting him in a precarious position. This comes just as the market shows signs of weakness. ETH is trading lower, down 4% in the last 24 hours, threatening Huang’s entire margin.

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Despite the market downturn, Huang has continued to increase his exposure. Over the weekend, he received 220,000 USDC from the investment firm QCP Capital and deposited it into the derivatives platform Hyperliquid to add to his long position.

Although ETH had a brief rally to $4,077 at the start of the week, it was quickly rejected, falling below $3,900. Ignoring the drop, Huang deposited an additional $100,000 USDC today, raising his total position to 2,575 ETH, valued at approximately $10.14 million.


Margin Depletes as Liquidation Looms at $3,800

Analysis of Huang’s position reveals the extreme danger of his bet. According to data from Hyperdash, the trade is 25x leveraged, with an average entry price of $3,955.13.

With ETH’s current price hovering around $3,894, the position is already significantly “underwater,” with an unrealized loss of over $164,000. The Ethereum liquidation risk is imminent: Huang’s liquidation threshold now sits at $3,803.86.

Critically, his margin usage has reached 95.72%. This means he has over $404,000 in collateral at immediate risk, with almost no room to absorb further downside volatility. If ETH falls below $3,803, he will lose his entire deposited margin, unless he adds more USDC as collateral.

This risky strategy is not new for Huang, who lost $35 million in profits during “Uptober” on a similar bet on the XPL token. Meanwhile, the ETH market remains under bearish pressure after failing at the $4,080 resistance, keeping the price in a tight range that jeopardizes overleveraged positions.

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