Jeffrey Huang, the crypto trader known as Machi Big Brother, has suffered cumulative losses nearing $71 million over four months due to repeated liquidations of highly leveraged Ethereum positions. The latest liquidation occurred in late January 2026 during an Ethereum downturn, wiping out an estimated $24.18 million from a position involving approximately 2,200 ETH.
According to data from decentralized exchanges, Huang's positions have been liquidated 145 times on the Hyperliquid platform since a market downturn on October 11, 2025. November 2025 was particularly brutal, with 71 separate liquidations recorded. By mid-October, his reported losses had already surpassed $53.8 million. Onchain data reveals a pattern of aggressive trading: after being fully liquidated on a 25x leveraged long ETH position as the market declined, Huang promptly opened another identical 25x long position.
This high-profile case unfolds against a backdrop of concerning market-wide metrics for Ethereum. Binance data shows Ethereum's Estimated Leverage Ratio hit a record high of approximately 0.675 on January 31, 2026, indicating traders are using unprecedented leverage. Paradoxically, aggregate open interest has fallen to around $16.4 billion, its lowest level since November 2024. This divergence means risk is concentrated in fewer, more highly-geared positions, increasing the market's sensitivity to forced liquidations during price swings.
Analysts note the current $2,700 price level for Ethereum exists in a fundamentally weaker context compared to July 2025. Key supporting factors like Bitcoin trading above its 50-week moving average, growing Ethereum ETF holdings, and regulatory progress have reversed. Now, Bitcoin shows selling pressure, ETF holdings have declined from an October peak, and the U.S. Clarity Act faces political delays.
Operational risks are also rising alongside leverage. Lookonchain reported a separate incident where a user lost 4,556 ETH (worth $12.4 million) in an address-poisoning scam, highlighting the dangers during volatile periods when traders move funds quickly to meet margin calls.
With Ethereum trading in a tightening range below a descending resistance line, the elevated leverage and thin liquidity create a precarious setup. The market is left highly vulnerable, where even smaller price movements around the $2,700 pivot could trigger cascading liquidations.
