Machi Big Brother’s High-Stakes Ethereum Gamble – A Cautionary Tale in Crypto Leverage Trading

Jeffrey Huang, a Taiwanese-American entrepreneur and cryptocurrency investor widely referred to as Machi Big Brother – has lost significant amounts of money because of how much he used leverage to invest in Ethereum. According to OnchainLens, Huang’s speculative trading methods have left his account with a significant loss amounting to $23.6 million, and he is now close enough to the liquidation threshold that this could be an imminent event – which currently stands at $30 per Ethereum token.

The Anatomy of a Whale’s Risky Position

Huang opened an extremely high amount of leverage for a long position in Ethereum on a decentralized exchange called Hyperliquid, creating the current challenge he faces. Total amount at stake approximately $130 million which includes approximately 23,700 ETH ($99.9 million), as well as assets in HYPE & PUMP tokens. As Ethereum is trading around $4,215 and Huang’s liquidation price is approximately $3,059, he is in a precarious financial position.

Huang has $29.64 million in margin, so he has almost no margin of safety left ($5 million at most). A drop in the price of Ethereum could result in a margin call. When Huang had to partially liquidate his ETH position, he deposited 262,500 USDC to increase his threshold against being liquidated.

A Pattern of Repeated Liquidations

Huang knows liquidation risk well, having experienced it 145 times on Hyperliquid during the time after the major market crash on October 11th, 2025. He is recognized as being one of the top liquidated traders on the platform. He was liquidated 71 times in November 2025 alone and remains committed to his bullish Ethereum position, despite overwhelming proof that may cause most traders to reconsider.

Jeffrey Huang has had a very interesting path toward becoming one of the most influential traders in cryptocurrency. He became well known during the 1990s as a member of the Taiwanese-American Hip-Hop group L.A. Boyz. After his musical career ended, Huang started MACHI Entertainment with Warner Music Taiwan and then transitioned into technology when he created the live streaming service 17 Media in Asia. In 2017, Huang entered cryptocurrency as a DeFi pioneer and an NFT whale.

Expanding Implication to the Market

Huang’s troubles are indicative of much larger problems in the cryptocurrency derivatives market. The crypto industry has experienced several mass liquidations in recent months, according to data from Phoenix Group, and there have been instances of over $1.38 billion in positions being liquidated in a matter of 24 hours. These liquidation storms form feedback loops that drive price changes faster, especially in the case of decentralized exchanges such as Hyperliquid where transparency is possible to other traders and they can see the position of whales.

Huang’s trading life fascinates the crypto community, which is not only entertainment, but also a good cautionary tale. Huang draws an example of the peril of holding firm faith in an asset. On one hand, that conviction will fuel tremendous profits during a bubble. On the other hand, if market conditions switch, that same unwavering faith can lead to catastrophic losses.

Conclusion

Huang’s current liquidation saga provides important lessons to cryptocurrency traders of all types. Even whales with a large capital reserve can get damaged with excessive leverage. Huang’s tendency to raise funding instead of reducing losses to prevent bankruptcy reflects a common psychological mistake that market participants make throughout time: a lack of effective risk-management practices. Although Huang’s current investment could work out, his past experiences indicate that lack of confidence, or adequate risk management, has historically been disastrous for many individuals active in cryptocurrency markets.