Machi Big Brother lost $12.2 million in trading wealth during the crypto sell-off
After the Hyperliquid trading account of encrypted trader Machi Big Brother grew from $56,000 to over $12 million in just four months, it has now dropped to only $21,800.
- After the Hyperliquid trading account, which belongs to Machi Big Brother, was forcibly liquidated, its value plummeted from a purported peak of 12.25 million US dollars to approximately 21,800 US dollars.
- Lookonchain indicates that this trader turned an initial $56,000 into over $12 million within four months, only to subsequently almost wipe out all of their profits.
- During this forced liquidation, Bitcoin fell below $81,000, and Ethereum approached $2,380, leading to a widespread sell-off in the crypto market.
- Reports indicate that Machi soon returned to trading and opened another long position in Ethereum with 25 times leverage.
According to the blockchain analysis platform Lookonchain, the real name of this trader is Jeffrey Huang. On October 15th, after a series of failed leveraged trades, their account was completely liquidated.
In a post on X on October 15th, the platform stated that Machi increased the initial $56,000 to $12.25 million through trading, but subsequently the account balance dropped to $21,787.78.
This decline means that, compared to the peak reported in the account, the loss exceeds 99%, and almost all of the gains accumulated over the previous four months have been wiped out.
This account is used for trading perpetual contracts on Hyperliquid. Traders can borrow leverage to open positions larger than their available collateral.
Reports indicate that Machi returned to trading shortly after being forcibly liquidated and opened another long position in Ethereum with a leverage of 25 times.
The decline in the crypto market triggered a large-scale forced liquidation.
At the time of the losses for Machi, both Bitcoin and Ethereum faced new selling pressure. BTC fell below $81,000, while ETH approached $2,380.
Before this round of decline, there had been several rounds of large-scale forced liquidations in the crypto derivatives market in the past few days.
On October 14th, crypto.news reported that another round of forced liquidations wiped out leveraged positions worth approximately $811 million. According to Bitget Research's data, the number of open contracts remaining after the sales was still close to $140.9 billion.
After the United States released inflation data that exceeded expectations, Bitcoin fell below $82,000. In September, the annual inflation rate in the U.S. reached 3.7%, higher than the market's forecast of 3.6%.
Selling pressure has been accumulating since the previous week, and within the 24 hours prior to October 9th, the forced liquidation of cryptocurrencies reached $1.09 billion, of which long positions accounted for approximately $1.05 billion.
Ethereum also faced similar pressure, as as of the week ending October 9th, there was a weekly outflow of $542.2 million from US spot Ethereum ETF.
Machi is said to have reopened an Ethereum position with 25 times leverage after being forced to close a trade, which continues to expose this trader to fluctuations in cryptocurrency prices.
