Volatile Markets and the Risks of High-Leverage ETH Trading: Analyzing Huang Licheng's Near-Liquidation 25x Leveraged ETH Position

The cryptocurrency market has long been a theater of extremes-where fortunes are made in hours and lost in minutes. Nowhere is this volatility more evident than in Ethereum (ETH), which in late 2025 became the focal point of a dramatic saga involving one of its most notorious traders, Huang Licheng. Known in crypto circles as "Big Brother Whale," Huang's 25x leveraged ETH position nearly collapsed in November 2025, offering a stark case study of the perils of high-leverage trading in a market prone to sudden, seismic shifts.

The High-Stakes Bet: Huang Licheng's 25x Leveraged ETH Position

Huang's gambit began with a $16,700 investment on the decentralized exchange Hyperliquid, which he amplified into a $5.8 million long position using 25x leverage. His entry price of $3,306.69 per ETH left him with a razor-thin margin before liquidation-a mere $45 drop in ETH's price would have wiped out his position, according to a Weex report. By early November 2025, Ethereum had plummeted to $3,297.90, a 10.74% weekly decline, pushing Huang's account balance from its peak to a meager $1,718 in just 47 days, as reported in a PanewsLab article. This collapse underscores the exponential risk of leveraged trading: a small adverse price movement can erase gains and capital almost instantaneously.

Market Conditions: A Perfect Storm for Liquidations

The broader context of Huang's trade was a crypto market reeling from geopolitical tensions and tariff-related uncertainty. In October 2025, ETH surged to $4,252 before collapsing by nearly 20% during the "tariff crisis" on October 10, hitting $3,500, according to a FinancialContent report. By November, the asset faced further downward pressure, with a 6.4% drop to $3,493 on November 4 alone, as noted in the same FinancialContent piece. These swings triggered $19 billion in liquidations across exchanges, with Ethereum's sharp declines amplifying the carnage. For traders like Huang, who relied on high leverage, the margin of safety evaporated as liquidity dried up and volatility spiked.

Industry Response: A Shift Toward Risk-Conscious Trading

The turmoil of late 2025 prompted a behavioral shift among traders. According to a Beincrypto report, users began reducing risk exposure ahead of the $1.5 billion "Red Monday" liquidation event on September 22. Liquidation checks and leverage calculations surged 30% above average between September 16–20, signaling anticipation of market stress. U.S. traders, in particular, adopted a defensive stance, conducting nearly twice as many liquidation checks per user as the global average, while Asian markets saw a 32% increase in futures trade setups post-crash, reflecting a quicker re-entry, as detailed in a The Block report. These trends highlight a growing awareness of leverage risks, with traders increasingly relying on tools like margin-check calculators to avoid catastrophic losses.

Huang's Resilience and Market Impact

Despite his near-liquidation, Huang's actions reveal the paradox of high-leverage trading: destruction and reinvention in real time. After his 25x position was liquidated for $1.57 million on October 23, he reopened another leveraged long at $4.05 million, with a liquidation price of $3,237.14, as reported in a Coinotag report. By November 5, his cumulative losses had ballooned to $13.76 million, with Hyperliquid itself down $13.33 million due to his trades, according to a Coinotag report. Huang's persistence not only amplified his personal losses but also contributed to Ethereum's downward spiral, as large leveraged positions often exacerbate market volatility through cascading liquidations.

Lessons for Investors: Caution in the Age of Leverage

Huang Licheng's story is a cautionary tale for crypto investors. While leverage can magnify gains, it equally magnifies risks in markets where volatility is the norm. The data from late 2025 underscores the importance of risk management: even seasoned traders can be undone by a single adverse price movement. For retail investors, the takeaway is clear-leveraged trading should be approached with extreme caution, if at all. As the industry evolves, the shift toward risk-conscious tools and strategies may mitigate some of these dangers, but the lessons of 2025 will linger.