Jeffrey Huang (Machi Big Brother) is experiencing a historical financial disaster due to the crumbling cryptocurrency trade market. According to Arkham Intelligence’s recent on-chain data, Huang has lost $4.4 million of his trading account in less than a week; this is a drop of 77% of value lost in just four days of trading. This pummeling is one of many over the course of the last seven-and-a-half months, as Huang’s portfolio has lost a total of $75 million during this time period.
The King of Liquidations Strikes Again
Huang has been an extremely high-risk trader for a long time; he frequently uses from 25x to 40x leverage on his Ethereum (ETH) trades by using the decentralized perpetual exchange, Hyperliquid. While the trading strategy allowed Huang to realize more than $44 million in unrealized gains in September 2025; shortly after that, there was a market correction that wiped out all his “genius” trades.
Huang has currently seen over three hundred and thirty-five liquidations of his ETH. This is mainly due to his relentless ability to continue recycling into a longer position of ETH, regardless of all past failures, earning him the title “King of Liquidations” by many in the crypto-community.
High Leverage and the Danger of Conviction
Huang’s demise is a consequence of the relentless mathematical fact high leverage has on his downfall. With 25x leverage, a 4% adverse price movement results in a complete loss of initial margin. Huang faced a difficult position himself as Ethereum’s price dropped from $4,700 at the end of 2025 to around $1,900 at the start of 2026. He could not respond because of a “liquidation cascade” set off by dropping prices.
Huang has constantly moved USDC into his trading account from his account to support his optimistic views. This has continued even after he has already suffered substantial losses, further increasing his overall exposure to market risk.
This would not only put Huang at greater risk through his Continued Betting into increasing his risk of being liquidated but would also increase his overall financial exposure as a result of adding to his trades. Using high conviction and heavy leverage in a low-volume market can cause short-term price swings to override a correct long-term view.
Current Market Standing and Outlook
Though Huang has incurred a total of $75 million in losses, he is not discouraged. He currently has long positions with both Bitcoin (BTC) and Ethereum as of May 1, 2026. After recently having a short “13-win streak” in April that yielded about $1.14 million of profits, however, it has been obscured by the most recent $4.4 million of profit from the past week.
Huang’s ordeal is a wake-up call to the entire industry about the risks involved with trading in decentralized finance (DeFi) derivatives. His open, on-chain battles provide real-time demonstrations of how being over leveraged can be hazardous.
Conclusion
The story of Jeffrey Huang moving from riches gained through NFT sales to losing $75 million through trading in a matter of days shows the two sides of cryptocurrency, the ability for wealth to be made and lost using the same method. At this point, there is still uncertainty around whether Machi Big Brother will be able to recover from these losses. However, his current situation serves as a painful lesson to traders everywhere about how volatile the market can be.
