Ethereum News Today: Resilient or Reckless? Machi's ETH Gamble Costs $15M in Volatile Crypto Market

Jeffrey Huang, known in the crypto world as Machi Big Brother, has once again drawn attention with a high-stakes Ethereum (ETH) trade that has spiraled into a $15.16 million loss. After a series of leveraged positions were liquidated, the prominent trader reopened a 25x long position on 100 ETH worth $364,000, with a liquidation price of $3,546.43, according to on-chain data from Hyperliquid shared by analytics firm Lookonchain, as reported in a CryptoTimes article. This move has reignited debates about the risks of high-leverage trading in the volatile crypto market.

The liquidation began when ETH's price dipped below $3,550, triggering a cascade of forced closures that reduced Huang's account to $16,771. This marked a dramatic reversal for a trader who had previously reported over $44.8 million in unrealized profits. Despite the losses, Huang's decision to immediately reinvest his remaining capital into another leveraged position has been described as both "reckless" and "resilient" by observers on social media; the CryptoTimes article captured many of those reactions.

Huang's current predicament is part of a broader market collapse. Derivatives data reveals that over $1.2 billion in long positions were liquidated within 24 hours as Bitcoin and Ethereum prices plummeted. High-leverage traders were particularly vulnerable, with forced liquidations exacerbating downward pressure on prices. Huang's account, once a top DeFi wallet with over $3 million in ETH longs, had dwindled to less than $90,000 before the final wipeout, a situation detailed in the CryptoTimes article.

This is not the first time Huang's trading strategy has backfired. In October, he faced partial liquidations despite adding $1.7 million in fresh collateral to sustain his positions. His liquidation threshold fluctuated around $3,668 during that period, but persistent market volatility eroded his holdings. Analysts note that his aggressive use of leverage, while historically profitable, has repeatedly exposed him to sudden losses, a pattern the CryptoTimes article also outlines.

Huang's journey from music to crypto has been marked by both triumph and controversy. A former member of the L.A. Boyz hip-hop group, he entered the crypto space in 2017 and became a major figure in NFTs, earning the nickname "The Godfather of NFTs" for his Bored Ape Yacht Club (BAYC) collection. However, his reputation has been marred by allegations of misappropriating 22,000 ETH from Formosa Financial's treasury, a claim he contested before withdrawing his lawsuit, as reported by CryptoTimes.

The crypto community remains divided on Huang's latest gamble. Some view his rapid reinvestment as a bold, almost theatrical display of resilience, while critics argue it underscores the dangers of over-leveraging. "Machi never gives up," Lookonchain observed, highlighting the trader's unyielding approach despite repeated setbacks; those remarks were picked up in the CryptoTimes coverage.

Huang's saga serves as a cautionary tale for traders. In a market where prices can shift rapidly, high leverage amplifies both gains and losses. For every $44.8 million in profits he once claimed, the $15.16 million loss illustrates the fragility of leveraged positions. As the crypto winter deepens, Huang's story underscores the reality that even seasoned traders are not immune to the market's brutal volatility.