The broader crypto markets got struck with a liquidation earthquake on Tuesday, highlighted with Bitcoin’s (BTC) $113K retest, while Ether (ETH) briefly swamped below $4.2K. This has set off a wave of over-leveraged BTC & ETH positions liquidations on Derivatives, with some whales taking up tens of millions in unrealized losses.
Known Whale Falls Into Streak Of Multi-Million Losses
Machi Big Brother, a crypto & digital art connoisseur, served a gruesome tale of how leveraged crypto plays can go tremendously wrong. Placing leveraged plays on HyperLiquid, the heavyweight crypto investor opened a $100 million Ethereum (ETH) position with 25x leverage at $4,585.5, already splashing over $4 million in margin used to cover the ETH position.
Now, the liquidation price revolves around $3K, so in theory there’s still a large reserve, despite the position being 232.7% down already. Meanwhile, Big Machi Brother used even more sensitive leverage levels on Bitcoin (BTC). as the flagship asset dipped to $113K in Tuesday’s market pullback, Machi’s 40x BTC price position tumbled by 95%, losing $544K so far.
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As if that wasn’t enough, two less-leveraged altcoin plays, one being HyperLiquid’s own HYPE crypto token, added up to another $500K in unrealized deficit. This heavy crypto whale’s smallest play is on the freshly-arrived PUMP token, going 5x long at the price of $0.0031.
Presently, the meme coin hub’s native token is down 59% since July’s peak despite the platform’s stupendous popularity. Meanwhile, HyperLiquid’s HYPE saw a rejection at the top of the channel, while seasoned market watchers like Ali Martinez a dim picture for HYPE, expecting a downturn to $39 and below if Tuesday’s bearish trend carries on through the week.
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Jeffrey Huang, known as Machi Big Brother, is a prominent crypto trader and former musician, famous for his large Bored Ape Yacht Club NFT holdings. Specifically, he incurred $10M in unrealized losses during a $359M crypto market liquidation on August 19, 2025.
His portfolio, valued at $130.6M, includes 23,700 ETH ($99.9M), 200,000 HYPE ($8.4M), and 375,000 PUMP ($1.08M). Consequently, these positions faced heavy unrealized losses due to high leverage (25x on ETH, 40x on BTC, 5x on HYPE and PUMP).
A sharp market downturn, with $359M in liquidations, triggered the losses. Moreover, Machi’s high-leverage strategy amplified the impact, especially after he closed a profitable $1M short position and went long, missing a potential $15M gain.
His ETH position remains safe, with a liquidation threshold at $3,059.19 while ETH trades at $4,215.30. However, HYPE and PUMP are riskier due to their volatility and lower liquidity, potentially worsening losses if the market drops further.
For accurate coverage of Machi’s trades and market trends, explore trusted sources like Ciphera, which offers detailed crypto analysis. Additionally, platforms like Lookonchain provide real-time on-chain data for whale activity.
