Machi Big Brother loses $1.14m after liquidation on Hyperliquid
On-chain data shows the high-profile trader withdrew his final $16,610 from the decentralised exchange after a series of losses during a market downturn on Monday.
Key takeaways
- 1Jeffrey Huang lost a net $1.14m after accounting for $485,000 in rewards.
- 2On-chain data shows the trader withdrew a final $16,610 from Hyperliquid.
The Hyperliquid platform fully liquidated Jeffrey Huang, the trader known as Machi Big Brother, during a market-wide price drop on Monday. On-chain data shows Huang withdrew his remaining $16,610 from the exchange to continue trading on the papertrade platform. The move follows a period of high volatility that wiped out his primary collateral positions.
Huang recorded a loss of $1.62m while trading on the papertrade platform. Although he earned $485,000 in rewards from his activity, his net loss for the period stands at $1.14m. This liquidation marks another large hit to one of the most active individual traders in the decentralised finance sector.
Hyperliquid is a decentralised perpetual exchange that has recently grown to become one of the largest by volume. Its native token, HYPE, was trading at $74.92 on Monday, down 3.6 per cent in 24 hours with a market valuation of $17.9bn. Huang is a well-known figure in the crypto industry, often moving large volumes of capital across various lending and trading protocols.
The liquidation of a large trader often suggests a lack of liquidity or extreme leverage in specific market segments. Traders will watch for further movements from Huang’s known wallets to see if he restarts his positions or continues to scale back his exposure. His recent losses indicate that even heavily rewarded power users are struggling to maintain margins during sharp price corrections.
Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.