Machi Small Brother Closes Ethereum 10x Long as Big Brother Faces Liquidation Risk

The recent price action of Ethereum has put in a tight situation two popular on-chain traders, who go by the names machismallbrother and machibigbrother, with each account reporting that they have lost multi-million dollars on leveraged long positions. Information provided by Onchain Lens reveals that the two are facing a tremendous turbulence and their subsequent actions in the ever-shifting market remain unclear.

Small Brother Closes 10x Ethereum Long With $1.55M Loss

As per the shared dashboard screenshot of Hyperliquid, machismallbrother.eth has just closed a 5,000 Ethereum long position at 10x leverage. The trade entry price was close to 3,123 but the decline that followed drove the position to a deep negative point. The ultimate closing loss was realized at $1,549,157.

Although this was disappointing, the overall historical PnL in the account is very positive -with over $7.3 million in historical accumulated profits in past perpetual trades. This implies that even though the recent position has brought in a good hit, the trader has a profitable long-term track record.

Big Brother Remains in Trouble With 25x Ethereum Long

In the meantime, machibigbrother seems to be in even worse position. The account still has a 7,265 Ethereum long position at 25x leverage, and the position is valued at 23.55 million. Hyperliquid data indicate a floating loss of over 2.3 million that puts the trader at the risk of liquidation.

The position was entered at an approximate of $3,438, but since Ethereum is currently trading at about 3,129, the leveraged exposure has increased the drawdown to a significant extent. 

The dashboard price is slightly lower than the present level in the market, which raises the question of whether the trader will be able to hold the downside pressure further.

Market Reaction and On-Chain Discussions Grow

This has become a hot debate in the social media, especially when Onchain Lens shared the performance comparison between the two accounts. That post doubted that the smaller trader was taking the footsteps of his Big Brother, meaning the similar leveraged strategies and well-timed entries.

The activity of the pair has been followed with close attention by traders in the crypto community since their trading, particularly at such a high leverage, can tend to move large volumes of liquidity through exchanges such as Hyperliquid and has the capacity to create and affect sentiment in leverage-intensive markets.

Volatility Continues as Ethereum Struggles to Rebound

The recent price correction on Ethereum has strained the highly leveraged positions on the exchanges. As volatility is heightened and market structure is undergoing change, the case of the Machi brothers highlights the danger of aggressive leverage trading, even when it comes to high-profile on-chain investors.

It remains to be determined whether machibigbrother will go under liquidation or it will be able to stay afloat. In the meantime, the market is keenly following as both of the accounts are aiming at sailing through one of the most critical challenges in the recent months.