Plasma News Today: Huang's XPL Long Nears Liquidation After 56% Price Plunge

The "Bro" long position, associated with high-profile investor Jeffrey Huang (Machi Big Brother), has incurred a total unrealized loss of $8.56 million, with the XPL long position alone accounting for $7.37 million of the deficit. Blockchain analytics from Hyperdash and on-chain monitoring platforms indicate that Huang's 5x leveraged XPL position, opened at $1.4, now faces a liquidation threshold of $0.5366. This follows a sharp decline in the token's price, which has erased nearly $44 million in gains accumulated over the previous 13 daysMachi Big Brother's $44M Profit Turns To $9M Loss On Hyperliquid^[1]. The position's funding fees have already exceeded $115,000, compounding the lossesMachi Big Brother's $44M Profit Turns To $9M Loss On Hyperliquid^[1].

Huang's exposure to XPL is part of a broader portfolio of leveraged positions on Hyperliquid. His ETH long position, valued at $128 million, remains in a $534,000 unrealized profit, with a liquidation price of $3,815. However, the XPL long position dominates the risk profile, as its liquidation price of $0.67 represents a 56% drop from the entry price. Meanwhile, Huang has reduced his HYPE long position by over 25,300 units in recent days, cutting his unrealized losses in that token to $6.5 million. The total portfolio still shows a combined profit and loss (PnL) of $11.6 million, though this is heavily dependent on the ETH position's performanceMachi Big Brother's $44M Profit Turns To $9M Loss On Hyperliquid^[1].

Market dynamics suggest a mixed outlook for XPL. While Huang's position reflects a bearish sentiment, other whale investors have been accumulating the token. Over 226 wallets added $1.16 million worth of XPL net tokens in the past week, and a single whale wallet, "0xd80D," increased holdings to $40.2 millionMachi Big Brother's $44M Profit Turns To $9M Loss On Hyperliquid^[1]. However, a $90 million token unlock on Oct. 25 poses a significant risk, as it could exacerbate selling pressureMachi Big Brother's $44M Profit Turns To $9M Loss On Hyperliquid^[1]. Despite these challenges, Huang has maintained the XPL position, indicating a belief in a potential price rebound.

The investor's strategy contrasts with broader market trends. Coinbase Research noted that net BTC spot longs appeared less extended by late September, while ETH positioning showed reduced exposureXPL Long Sinks to $8.08M Floating Loss with $0.43 Liquidation as …^[4]. In altcoins, the open interest dominance ratio remains above a critical threshold, signaling heightened liquidation risksXPL Long Sinks to $8.08M Floating Loss with $0.43 Liquidation as …^[4]. For XPL, the $0.43 liquidation price reported by COINOTAG News underscores the fragility of the position, as further price declines could trigger margin calls.

Huang's actions highlight the volatility inherent in leveraged trading. While his ETH position provides a buffer, the XPL long remains a critical vulnerability. The investor's recent scaling up of XPL spot positions-adding $37.69 million worth of tokens-suggests a hybrid approach of hedging and speculationXPL's mysterious whale increased its spot positions and partially ...^[2]. However, the $197,000 floating loss on these spot holdings, coupled with leveraged losses, illustrates the double-edged nature of high-leverage strategies in a rapidly shifting marketXPL's mysterious whale increased its spot positions and partially ...^[2].