Crypto trader Machi Big Brother has lost almost all of the fortune he built through leveraged cryptocurrency trading, with his Hyperliquid account falling from a reported peak of $12.25m to $21,787.78.
Blockchain analytics platform Lookonchain said the trader, whose real name is Jeffrey Huang, had turned an initial $56,000 stake into more than $12m over four months. The account was fully liquidated on 15 October after a series of leveraged positions moved against him.
The collapse represents a loss of more than 99% from the account’s highest reported value, effectively erasing the gains accumulated during the previous four months.
Lookonchain detailed the losses in a post on X on 15 October, saying Huang’s balance had dropped to $21,787.78. Other reports put the remaining value at approximately $21,800.
The account was used to trade perpetual futures on Hyperliquid. Those products allow traders to borrow exposure and open positions larger than the collateral they hold, increasing both potential returns and the risk of liquidation.
Despite the loss, reports indicated that Machi returned to the market shortly afterwards. He reportedly opened another long position on Ethereum using 25x leverage, leaving the trader exposed to further price movements.
The liquidation took place during a wider sell-off in cryptocurrency markets. Bitcoin fell below $81,000, while Ethereum approached $2,380 as selling intensified across digital-asset derivatives markets.
The downturn followed several days of heavy liquidations. On 14 October, crypto.news reported that a further wave of forced closures had wiped out approximately $811m in leveraged positions. Open interest remained close to $140.9bn after the sell-off, according to Bitget Research.
Bitcoin had already fallen below $82,000 after the release of higher-than-expected US inflation figures. Annual inflation reached 3.7% in September, above the market forecast of 3.6%.
Selling pressure had been building since the previous week. Crypto liquidations reached $1.09bn in the 24 hours leading up to 9 October, with long positions accounting for approximately $1.05bn of that amount.
Ethereum was also affected by the broader weakness. US spot Ether exchange-traded funds recorded weekly outflows of $542.2m during the week ending 9 October.
Machi’s reported decision to open a new 25x leveraged Ethereum position after being liquidated came as the market remained under pressure. His trading activity therefore continued to carry significant exposure to further movements in the cryptocurrency’s price.
