Trader’s 25x Leveraged ETH Long Liquidated for $1.57M Loss

Machi Big Brother Huang Licheng faces total losses nearing $13.76 million after a new high-leverage Ethereum trade followed his recent liquidation.

ETH

Summary

On October 23, Onchain Lens reported that crypto trader Machi Big Brother Huang Licheng’s 25x leveraged long position in Ethereum was fully liquidated, resulting in a $1.57 million loss. Shortly after, he entered another 25x leveraged ETH long, which has brought his cumulative losses to $13.76 million. The incident highlights the extreme risks inherent in high-leverage cryptocurrency trading.

Terms & Concepts
  • Leverage: The use of borrowed capital to increase exposure to an asset, potentially magnifying both gains and losses.
  • Liquidation: The forced closure of a leveraged trading position when losses exceed a certain threshold, often to prevent further risk to the lender.
  • ETH: The native cryptocurrency of the Ethereum blockchain, used for transactions, smart contracts, and decentralized applications.