Machi Big Brother liquidated on Hyperliquid after leveraged trades turned against him. His account fell to just $21,800. Lookonchain reported the liquidation on October 15.
Why Machi Big Brother liquidated his Hyperliquid account
According to Lookonchain, the trader’s real name is Jeffrey Huang. He built a $56,000 stake into $12.25 million over four months. However, his account balance then dropped to $21,787.78. As a result, the loss exceeded 99% from the reported peak. This wiped out gains from the prior four months.
The account traded perpetual futures on Hyperliquid. Therefore, traders can borrow exposure for larger positions. Meanwhile, reports said Machi returned to trading shortly after. Specifically, he opened another Ethereum long with 25x leverage.
Crypto market downturn triggers heavy liquidations
Machi’s losses came as crypto markets sold off. Bitcoin fell below $81,000. Ethereum approached $2,380. Consequently, derivatives markets saw heavy liquidations over several days.
On October 14, another liquidation wave erased about $811 million in leveraged positions. After that selloff, open interest remained near $140.9 billion, according to Bitget Research.
Bitcoin had already fallen below $82,000. This followed hotter-than-expected U.S. inflation data. Annual inflation reached 3.7% in September. That was above the 3.6% market forecast. Therefore, traders reduced risk.
Selling pressure had been building since the prior week. Crypto liquidations reached $1.09 billion in the 24 hours to October 9. Long positions accounted for about $1.05 billion of that total. Meanwhile, Ethereum faced similar pressure. U.S. spot Ether ETFs recorded $542.2 million in weekly outflows. That covered the week ending October 9.
What comes next for Machi Big Brother
Machi’s decision to reopen a 25x Ethereum long left him exposed. Consequently, further price moves could trigger more gains or losses. For now, the market remains volatile. Traders should watch Bitcoin and Ethereum levels closely.
