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Machi Big Brother’s $16M ETH Perpetual Long Nets $1.05M Weekly Gains

Machi Big Brother’s $16M ETH Perpetual Long Nets $1.05M Weekly Gains

Onchain data reveals the trader faced four liquidations in one hour, sharply cutting his leveraged ETH position and adding millions to weekly losses.

ETH

Summary

Machi Big Brother experienced four liquidations within one hour, reducing his 25x leveraged ETH perpetual long from 4,500 ETH to 1,863 ETH, valued at $5.73 million. These rapid losses brought his weekly deficit to $4.79 million, underscoring the risks of his high-leverage trading strategy.

Terms & Concepts
  • Leveraged Position: A trading strategy that uses borrowed funds to increase exposure, amplifying both potential gains and losses.
  • Liquidation: The forced closure of a leveraged position when losses reach a level that depletes the trader’s margin, preventing further losses.
  • ETH Perpetual Futures: A type of derivative contract tied to Ethereum that has no expiry date, allowing traders to hold leveraged positions indefinitely.