Crypto Trader Li-Cheng Huang Faces Significant Losses Amid ETH Liquidations

On January 20, prominent crypto trader Li-Cheng Huang, known as ‘Machi Big Brother,’ experienced five liquidations of his 25x long Ethereum position amid a market downturn, totaling losses of $24.18 million.

This liquidation highlights the inherent risks in high-leverage trading as market fluctuations can rapidly escalate losses, potentially impacting broader market sentiment and individual trader strategies.

$24.18 Million Loss after Ethereum Liquidation Frenzy

Huang, actively involved in high-leverage positions on Hyperliquid, has faced repeated liquidations, with this recent occurrence amplifying his losses. Before this downturn, Huang’s speculative strategies sometimes led to significant profits, yet also left him exposed to considerable risks.

A recent report by Coincu suggests the growing need for more stringent regulations to manage high-risk leverage trading, with implications for exchanges like Hyperliquid. These events underline the necessity for informed risk assessment, a crucial factor in the highly volatile cryptocurrency sector.

Ethereum Volatility Sparks Call for Tighter Trading Controls

Did you know? The frequency of Huang’s liquidations on Hyperliquid since 2025 has outpaced that of other well-known traders, such as James Wynn and Andrew Tate, showcasing the intense volatility associated with leveraged positions.

Ethereum’s current performance reflects broader market conditions, with its price at approximately $2,985.03, marking a 7.24% drop over 24 hours. The market cap stands at $360.28 billion, absorbing fluctuations amid a turbulent market phase. Trading volume reached $30.47 billion, registering an 8.71% change in one day, according to CoinMarketCap.

The Coincu research team highlights the potential for more stringent regulations to manage high-risk leverage trading, with implications for exchanges like Hyperliquid. These events underline the necessity for informed risk assessment, a crucial factor in the highly volatile cryptocurrency sector.