Event Recap: 25x Leverage Long Nears Liquidation
According to data from crypto tracking platform Hyperbot, a sharp short-term decline in the cryptocurrency market pushed Taiwanese celebrity investor Huang Licheng (known as 'Machi Big Brother') close to liquidation on his 25x leveraged long position in Ethereum. High-leverage long positions are extremely vulnerable to liquidation during rapid price drops, and this crash nearly resulted in significant losses for Huang.
Leveraged trading amplifies both gains and risks. With a 25x leverage, a roughly 4% adverse move in ETH price would trigger forced liquidation. The market's sudden crash evidently approached that threshold.
Adding Positions: Current Holding 151 ETH, Floating Loss Narrows
Facing imminent liquidation, Huang chose to add margin and actively increase his position to lower the liquidation price. According to the latest Hyperbot data, Machi Big Brother now holds 151 ETH, and his floating loss has narrowed to approximately $5,000. Although the absolute loss is modest, the return on investment remains at negative 52.86%, indicating a high entry cost and an overall deeply underwater position.
Adding positions to average down the cost basis is common in crypto trading, but if the market continues to decline, it could amplify losses. Huang, known for his active social media presence, has sparked community discussion about market direction with this move.
Risk Warning: Extreme Caution Required for High Leverage
A 25x leverage represents an extremely high risk appetite, an aggressive strategy even for seasoned traders. This event again reminds market participants that crypto markets are highly volatile, and leveraged contracts can go to zero in an instant. While Huang's financial strength allowed him to avoid liquidation, ordinary investors should not blindly imitate such tactics.
As of press time, the specific ETH price is not disclosed, but Hyperbot data indicates Huang's current position has stabilized. Future market movements will determine the final profit or loss of this trade.