Cryptocurrency markets witnessed a dramatic shift in leverage concentration as prominent trader Jeffrey "Machi Big Brother" Huang significantly restructured his portfolio despite mounting losses. On-chain data reveals that over a 20-day period ending in mid-February 2026, Huang incurred over $27.5 million in losses and faced 145 liquidations on the Hyperliquid derivatives platform.
Instead of de-risking, Huang escalated his strategy by selling spot Ethereum and smaller tokens to raise collateral. He then rotated this capital into large, leveraged long positions on Bitcoin (BTC), Ethereum (ETH), and the Hyperliquid exchange's native token (HYPE). His current holdings include a leveraged long of 1,689.6 ETH (valued at ~$3.28 million with a liquidation price of $1,929.08), 25 BTC (~$1.72 million), and 55,000 HYPE (~$1.7 million). His largest conviction bet remains the ETH long position.
This high-risk maneuver coincided with a broader market dynamic where open interest (OI) was draining from major assets. Bitcoin's OI fell from over $12 billion in late January to $7.6 billion as its price slid from the $80,000s into the $60,000s. Ethereum mirrored this decline. In stark contrast, HYPE's open interest climbed toward $1.32 billion from $1.19 billion, indicating that leverage did not vanish but concentrated into this single, more speculative asset.
The sentiment split is further highlighted by funding rates. While BTC traders leaned net short at 56% and ETH showed a 58% short bias, HYPE exhibited 69% long dominance. This creates an uneven liquidation risk landscape: BTC and ETH face potential short squeezes, while HYPE is vulnerable to long unwinds. Market observers are divided on whether Huang's actions represent a calculated directional bet on a market rebound or a dangerous refusal to accept defeat, especially with his key ETH position teetering near its liquidation trigger.
