Huang Licheng Faces 20% ETH Long Position Liquidation

Huang Licheng Faces 20% ETH Long Position Liquidation

Huang Licheng’s leveraged ETH and HYPE trades now show over $110,000 in unrealized losses, reflecting renewed risk after recent volatile performance.

ETH
HYPE

Fact Check
The evidence strongly and consistently supports the statement. Multiple high-authority sources, citing on-chain data, confirm that Huang Licheng ("Machi Big Brother") holds a high-risk, 25x leveraged Ethereum long position. Critically, several sources report that this specific position has already been partially liquidated due to recent market declines, which directly confirms its vulnerability and proximity to its liquidation price.The mechanics of leverage trading make the claim highly plausible. A 25x leveraged position has a liquidation threshold of approximately a 4% price move against it (100% / 25 = 4%). Given that the position has already suffered partial liquidations, it is operating under significant margin pressure. A subsequent 20% drop in price would be far more than sufficient to trigger a full liquidation of the remaining position, unless a very large amount of new collateral was added, which is not suggested by the sources.While the sources don't explicitly state "a 20% drop will cause liquidation," the combined evidence of the 25x leverage, the confirmed partial liquidations, and his established profile as a high-frequency trader with numerous past liquidations (71 cited) makes this conclusion a near certainty. There are no contradictory sources. The small margin of uncertainty (15%) accounts for the possibility that he may have significantly altered or de-leveraged the position since the data was reported.
Summary

On Nov. 26, Huang Licheng’s trading address holds long positions in ETH and HYPE with unrealized losses exceeding $110,000. His ETH position consists of 4,550 ETH at an entry price of $2,883.4, facing liquidation at $2,767.3. The HYPE position totals 102,888.88 HYPE purchased at $32.4973, with a liquidation price of $27.091. This follows his re-entry into leveraged crypto trades after experiencing heavy losses earlier in November.

Terms & Concepts
  • ETH long position: A trading bet that the price of Ethereum will rise, often using leverage.
  • Liquidation: The forced closure of a trader’s position when losses exceed a certain threshold, usually in leveraged trading.
  • Leverage: The use of borrowed capital to increase the potential return of an investment, which also increases potential risk.