Prominent crypto trader and NFT influencer known as Machi Big Brother has endured a devastating financial blow, with his trading account on the decentralized derivatives platform Hyperliquid being partially liquidated yet again, reducing his equity to just $92,000. On-chain analytics firm Lookonchain reported the development, revealing that over the past 20 days, Machi deposited approximately $3.19 million in USDC into Hyperliquid, which has now been entirely lost.
Total realized and unrealized losses for the trader now exceed $27.5 million during this period, marking one of the most high-profile liquidation events in recent weeks. The core of the losses stemmed from a highly leveraged long position on Ethereum (ETH). Despite the liquidations, Machi still holds a remaining position of 1,689.6 ETH, valued at roughly $3.28 million. This position carries significant risk, with a reported liquidation price of $1,929.08 per ETH.
The incident underscores the extreme risks associated with leveraged trading on decentralized platforms. Analysts note the position was leveraged at reported levels over 35x, leaving it vulnerable to even minor price swings. The automatic liquidation mechanics of decentralized exchanges like Hyperliquid can rapidly escalate losses during periods of market volatility, as seen with Ethereum's recent price fluctuations.
This event highlights the growing scale and maturity of on-chain derivatives markets, which now facilitate multi-million dollar trades, but also places trader risk management and discipline under a public microscope due to the transparent nature of blockchain records.
