Data shows his 25× ETH position is 95% margin-used, leaving him exposed if prices fall below the $3,803 liquidation threshold.
The whale trader who lost over $35 million in profits from long bets during the start of Uptober has placed several long bets on Ethereum, which have all counted losses as the second largest coin by market cap is trading in the red side of the market.
Celebrity investor and crypto trader Jeffrey Huang, better known by his alias Machi Big Brother, is staring down potential losses of millions after taking several leveraged long positions on Ether.
The world’s second-largest cryptocurrency by market cap is trading in the red at the time of this publication, down 4% in the last 24 hours, according to CoinGecko.
Whale continues mounting long bets, ignoring market downturn
Over the weekend, Huang received an injection of 220,000 USDC from investment firm QCP Capital and deposited it into Hyperliquid to add to his long position on ETH. At the time of the deposit, Ethereum’s price stood roughly at $3,831.24.
The coin made a small price comeback to the $4,000 level during the start of this business week, reaching $4,077 before tanking over 4.6% to $3,843 in Tuesday’s early Asian trading sessions.
Huang was holding 1,439 ETH, equivalent to around $5.5 million, with a liquidation price set at $3,734.49, before he decided to expand his exposure by depositing another $100,000 USDC into Hyperliquid today. That raised his holdings to 2,575 ETH, or approximately $10.14 million, with a new liquidation threshold of $3,843.56.
At around 5 AM UTC, he made a third deposit of $105,000 USDC to avoid immediate liquidation. He added and added to his long, upending the position to 2,600 ETH (valued at roughly $10.02 million) and adjusted the liquidation price to about $3,803.71.
According to data from Hyperdash, which monitors derivatives positions, Huang’s ETH long position is leveraged 25x with a position value of roughly $10,118,420, an entry price of $3,955.13, and a liquidation threshold of $3,803.86. His margin usage is 95.72%, with more than $404,736.80 in margin currently at risk and a negative unrealized PnL of -$164,933.12 (-40.75%).
Since he entered at about $3,955 per ETH and the current price is near $3,894, his position is already drowning deep underwater. Huang entered the long at $3,955.13 but, at about $3,894.20, he is already down by roughly $61 per ETH across his 2,600-ETH position.
If ETH’s price falls toward or below the liquidation price of $3,800, he would completely lose the margin he deposited. Machi Big Brother would need to inject additional more USDC as collateral to bring margin usage below the critical threshold and give him more room to absorb further price drops.
As reported by Cryptopolitan less than two weeks ago, Huang reportedly realized approximately $44 million in profits from long bets on the Plasma (XPL) token just prior to October 1, during what crypto traders refer to as “Uptober”.
However, a drop of up to 46% in XPL’s price saw those once-realized profits evaporate, leaving Huang sitting on an unrealized loss of nearly $9 million on a separate 5x leverage position.
ETH price crumbles under pressure, bull signals fade
Most cryptocurrencies, like ETH, have not yet found their footing back to October-start levels, with losses from Bitcoin and altcoins causing a 3% market cap loss in the broader market.
After a bounce to clear the $3,880 and $3,980 levels on Monday, including surpassing the 50% Fibonacci retracement of the move from $4,292 to $3,677, Ethereum has failed to sustain the upside.
Bears took back control around the $4,080 resistance zone, and the price did not settle above the 61.8% Fib retracement level. According to “trading psychologist” Jimie NLP, ETH’s price behavior follows a repeating rhythm of trending down, consolidation, and finally a price breakout.
However, he mentioned that in the current phase, the breakout is “stalled” because traders are watching for mean-reversion setups while buying low and selling high within the tight $3,800-$4,100 range.
If you’re reading this, you’re already ahead. Stay there with our newsletter.
