Machi Big Brother Loses $12.25M, Reopens 25x Ethereum Long

Hyperliquid trader Machi Big Brother was fully liquidated on October 15, 2026, with his account falling from a reported $12.25 million peak to about $21,800, according to Coincentral. Roughly 25 minutes later, he returned to the same venue with a new 25x leveraged Ethereum long.

The trader, whose real name is Huang Licheng, had grown an initial $56,000 stake into $12.25 million over four months of leveraged trading, on-chain monitoring firm Lookonchain said in an October 15 post. Crypto.news reported the same $56,000-to-$12.25 million arc and put the closing balance at $21,787.78, a decline of more than 99% from the peak. Coincentral cited BlockBeats on-chain detection for the four-month run.

Key facts

• Machi’s Hyperliquid account was fully liquidated on October 15, 2026, falling from a $12.25 million peak to $21,800, per Coincentral.
• Crypto.news reported the closing figure as $21,787.78 and said the drop erased more than 99% of the account’s value.
• About 25 minutes after the wipeout, he opened a new 25x leveraged Ethereum long holding 290 ETH, per Hyperbot and Odaily data cited by Coincentral.
• The new position carries a liquidation price of $2,324.
• Crypto.news said the liquidation came as Bitcoin fell below $81,000 and Ethereum approached $2,380 amid broad crypto selling.

How the position unwound

Machi’s run depended on perpetual futures, contracts that let traders bet on price direction without an expiry date. On Hyperliquid, users can borrow exposure to hold positions larger than their collateral; when price moves against that position, the exchange can close it automatically. Crypto.news described the account as having been built through exactly that kind of borrowing.

Hupzy, a crypto news account, noted that a loss on this scale can force other positions to close on a perpetual futures venue, and pointed to the episode as an illustration of high-leverage risk on Hyperliquid. Coincentral reported that on-chain monitors flagged the liquidation as it occurred.

Why it matters

Machi’s losses landed inside a wider derivatives flush. Crypto.news reported that an earlier wave on October 14 erased roughly $811 million in leveraged positions, and that open interest stood near $140.9 billion after the selloff, according to Bitget Research. The outlet also noted that Bitcoin had already slipped below $82,000 after hotter-than-expected U.S. inflation data, with annual inflation at 3.7% in September against a 3.6% forecast. Liquidations reached $1.09 billion in the 24 hours to October 9, with long positions accounting for about $1.05 billion of that, and U.S. spot Ether ETFs recorded $542.2 million in weekly outflows in the week ending October 9, per Crypto.news.

For readers, the mechanics are the point: a four-month gain can be reversed in a single auto-close, and the trader then re-entered at the same leverage. Coincentral reported that it was not clear from the reports how the new trade was funded after the balance fell to $21,800, and that no margin details were provided.

What to watch

The disclosed liquidation price of $2,324 on the 290 ETH long is the level to track; if Ether trades at or below it, the position is automatically closed. Broader direction still hinges on whether the inflation-driven selling that pushed Bitcoin below $81,000 and Ethereum toward $2,380 extends from here.

This is not financial advice, and cryptocurrency markets are volatile and uncertain.

Disclaimer: This article is for information only and is not investment, financial or trading advice. Cryptocurrency prices are highly volatile. Always do your own research.

Sources: CoinCentral, Crypto.news