Bitcoin "door painting" market suddenly surges! Brother Ma Jie Bitcoin, HYPE long positions liquidated

Taiwan’s well-known crypto investor Brother Ma Ji Huang Licheng suffered another crushing defeat during the Bitcoin “door painting” event in the early hours of December 17. According to hyperbot data, Huang Licheng closed all his BTC long positions and HYPE long positions 9 hours ago, incurring a total loss of $70,600. Even more severely, his ETH long positions are suspected to have been liquidated 17 times, reducing his ETH longs by 775 units, with a loss of $37,200.

The Two-Way Kill Zone of the Bitcoin “Door Painting” Event

(Source: Trading View)

The market trend late on December 17 was a classic “door painting” event. Around 22:45, Bitcoin suddenly surged sharply, breaking through $90,000 in the short term. This rapid surge attracted a large number of chasing buy orders. However, the good times didn’t last long; selling pressure then emerged, causing Bitcoin to give back its gains and even fall below $87,000. Ethereum’s movement was similar, initially breaking through $3,000, then quickly retreating, currently reported at $2,850 at the time of writing.

This kind of rise followed by a sharp drop is called “door painting” in the crypto market because the candlestick chart resembles a door. This market pattern is extremely damaging to leveraged traders because it triggers double-sided liquidations in a short period. It first pushes prices up to clear out short positions, then dumps to liquidate long positions, allowing the market makers or big players to profit from the chaos.

According to Coinglass data, during this wave of market whipsawing, total liquidations across the network in the past 4 hours reached $194 million, with longs liquidated for $72 million and shorts for $121 million. This data reveals the brutal reality of the market: whether going long or short, high-leverage traders are all at risk of being harvested.

Brother Ma Ji Huang Licheng happened to chase the surge during this wave of volatility. OnchainLens monitoring shows that Huang Licheng deposited 149,904 USDC in the evening and opened new 40x BTC longs, 10x HYPE longs, and increased ETH longs by 25x. This high-leverage chasing during intense volatility is the direct cause of the chain reaction of liquidations.

The Leverage Trap Behind 17 Liquidations

(Source: Hyperbot)

Huang Licheng’s ETH longs are suspected to have been liquidated 17 times between 1:00 and 4:30 in the early morning, a very rare occurrence. Usually, a single market fluctuation triggers only a few liquidations, but 17 times indicates that Huang Licheng kept adding to his position after each liquidation and was liquidated again and again. This behavior is known in trading psychology as “revenge trading,” attempting to average down or recover losses through increased position size, but often leading to even greater losses.

Within 3.5 hours, he reduced his ETH longs by 775 units, incurring a loss of $37,200, averaging about $2,188 per liquidation. This chain of liquidations shows that Huang Licheng was using extremely high leverage, with each small price movement triggering a liquidation, and he immediately re-entered after each one, leading to subsequent liquidations.

Even more shocking is his behavior of adding to his position during losses. After experiencing partial liquidations, he deposited 149,900 USDC to add margin and increased his ETH longs by 350 units. This “buying the dip” strategy is extremely dangerous in a clear downtrend, as each addition increases risk exposure rather than reducing it.

The Timeline of Huang Licheng’s Trading Disaster in the Early Morning

22:45: Bitcoin surges sharply past $90,000; Huang Licheng opens 40x BTC longs and 10x HYPE longs

1:00-4:30: ETH longs face 17 liquidations, reducing by 775 units, with a loss of $37,200

During liquidation: Emergency deposit of 149,900 USDC to add margin, and increase ETH longs by 350 units

9 hours later: All BTC and HYPE longs are closed, with a loss of $70,600

Currently, Huang Licheng holds 5,000 ETH longs worth $14.14 million, with an unrealized loss of $524,000. This indicates that despite the chain of liquidations and losses, he still maintains a huge leveraged position. If Ethereum continues to decline, these 5,000 ETH longs could face even greater liquidation risk. The unrealized loss of $524,000 is already significant, but relative to his position size of $14.14 million, it accounts for only about 3.7%, suggesting his average cost is around $2,960.

The Dilemma of the Long King Losing $3.4 Million in a Week

Hyperbot data shows that over the past week, Brother Ma Ji has accumulated losses of $3.4 million, a continuous retreat. Known as the “Long King,” Huang Licheng has long been famous for his high-leverage long strategies, often profiting in bull markets. However, in the current volatile market, this strategy is under severe test.

The weekly loss of $3.4 million indicates systemic issues. This is not just a single trade mistake but a fundamental mismatch between his strategy and the market environment. When the market is in a clear upward trend, long strategies can continue to profit. But in choppy or downward markets, high-leverage longs are akin to trading against the trend, with each rebound acting as a trap for the longs.

Huang Licheng’s trading pattern reveals several fatal weaknesses. First, excessive leverage—40x BTC longs and 25x ETH longs—are highly susceptible to liquidation in volatile markets. Second, chasing the rally—entering during rapid price increases—often at the short-term top. Third, refusing to cut losses—adding to positions after being liquidated instead of admitting mistakes and exiting.

As a public figure, Huang Licheng’s trading record is tracked and made public by on-chain analysis tools, turning his losses into market discussion points. While this transparency satisfies market curiosity, it may also add psychological pressure. When every loss is publicly commented on, making rational trading decisions becomes more difficult.

The Three Fatal Mistakes of High-Leverage Chasing

Huang Licheng’s recent loss provides valuable lessons for all leverage traders. The first mistake is using extremely high leverage during intense volatility. 40x and 25x leverage mean that a price move of only 2.5% to 4% can trigger liquidation. During Bitcoin’s move from $90,000 to $87,000—a 3.3% fluctuation—his 40x long would inevitably be liquidated.

The second mistake is chasing the rally rather than buying on dips. Entering during Bitcoin’s sharp surge at 22:45 is akin to buying at a short-term top. Experienced traders usually build positions during pullbacks, not during rapid surges. Chasing the rally works in strong trending markets but often buys at the highest point in choppy markets.

The third mistake is continuing to add to positions after being liquidated. After ETH longs were liquidated, Huang deposit 149,900 USDC and added 350 ETH longs. This emotional trading behavior is typical of traders who refuse to accept losses. Rationally, after being liquidated, one should pause trading, reassess the market, and correct the strategy. Instead, Huang chose to add more, expanding his losses and creating a chain of further liquidations.

Currently, Huang Licheng holds 5,000 ETH longs worth $14.14 million, with an unrealized loss of $524,000. If Ethereum continues to fall, he faces greater liquidation risk. The most rational approach would be to reduce leverage or cut positions to lower risk exposure. However, based on his trading pattern over the past week, he seems inclined to hold or even add to his positions, increasing the risk of further losses.