Machi Big Brother Faces New ETH Liquidations as 25x Long Bet Falters

The prominent cryptocurrency trader and entrepreneur Huang Licheng, widely known as Machi Big Brother, has once again faced partial liquidations on his leveraged Ethereum (ETH) positions. According to on-chain data tracking, a recent short-term market downturn triggered the liquidation of a portion of his high-risk exposure. Currently, his position holds approximately 2,500 ETH, with floating losses estimated at US$250,000 as the market remains volatile.

Leveraged Strategy and Liquidation Risks

The recent market correction has placed significant pressure on aggressive long positions across decentralized derivatives platforms. Reports indicate that Huang Licheng utilized 25x leverage on the Hyperliquid perpetual exchange to maintain his bullish outlook on Ethereum.

• Liquidation Price: The estimated liquidation threshold for the remaining position is approximately US$1,920 per ETH.
• Recent Capital Injections: On-chain monitors such as Lookonchain and Arkham recently noted deposits of US$250,000 in USDC to bolster margin requirements.
• Current Exposure: The trader continues to hold a substantial amount of Ethereum, though high leverage makes the position sensitive to price drops of just a few percentage points.

In derivatives trading, high leverage like 25x means that a 4% move against the position can result in a total loss of the initial margin, leading to automated liquidation by the exchange’s smart contracts.

Cumulative Impact of Volatility

The ongoing challenges for the trader come amid a broader period of underperformance for Ethereum relative to Bitcoin (BTC). As of March 8, 2026, Ethereum has been testing critical support levels near the US$1,980 mark, with market sentiment impacted by macroeconomic factors and geopolitical tensions.

“ETH either holds here and leads the next leg or becomes the funding source for BTC's final blow-off”, noted technical analysts observing the current price action.

Public trading records suggest that Huang Licheng’s strategy of "averaging down" on leveraged positions has led to cumulative losses exceeding US$74 million over the past six months. Despite these setbacks, the wallet labeled "Machi Big Brother" has repeatedly re-entered the market with fresh collateral to sustain his long-term directional thesis.

The current market environment continues to challenge high-leverage traders. While Ethereum remains the leading platform for smart contracts and decentralized applications, its recent price action highlights the risks inherent in using significant margin during periods of high volatility. Market participants are closely watching the US$1,900 level, which serves as a psychological and technical floor for many existing leveraged longs.