Machi Big Brother’s Leveraged ETH and HYPE Trades Lose Over $26M

Recent on-chain data shows Huang Licheng trimming leveraged ETH and HYPE positions amid continued volatility and substantial unrealized losses and gains.

ETH
HYPE

Summary

On Feb. 3, Huang Licheng, known as Machi Big Brother, reduced his leveraged long positions in Ethereum (ETH) and HYPE. He currently holds 1,120 ETH with 25x leverage, facing an $80,000 unrealized loss, and 48,568.89 HYPE with 10x leverage, showing a $15,000 unrealized profit. This follows prior partial liquidations on the same positions, with overall losses previously reported exceeding $26.23 million, underscoring the high risks of extreme leverage in fluctuating crypto markets.

Terms & Concepts
  • Leverage: Using borrowed funds to increase market exposure, which amplifies both potential gains and losses.
  • Liquidation: Forced closure of a trading position when the market moves against it beyond allowable limits, often to prevent further losses.
  • Leveraged Long Position: A trade that uses borrowed capital to bet on a price increase, magnifying potential returns and risks.