In the wild world of crypto trading, even the biggest players can get caught off guard. That's exactly what happened to Jeffrey Huang, better known as Machi Big Brother, a legendary figure in the meme coin and NFT space. According to a recent post from on-chain analytics firm Lookonchain (view the thread), Machi got hit hard by multiple liquidations on his ETH long positions amid a market downturn, wiping out millions and leaving his account with just $130K.

For those new to the scene, a "long position" means betting that the price of an asset like Ethereum (ETH) will go up. Liquidation happens when the market moves against you enough that your exchange automatically closes your position to prevent further losses—often at a steep cost. Hyperliquid, the platform where this drama unfolded, is a decentralized perpetual futures exchange, allowing traders to use leverage (borrowed funds) to amplify their bets. It's popular among high-risk players, but as Machi's case shows, it can lead to brutal outcomes.

Machi's Rollercoaster Journey on Hyperliquid

Lookonchain highlighted that Machi went from a jaw-dropping +$43.64M in profits to a painful -$12.28M in losses on Hyperliquid. This isn't his first rodeo with volatility—Machi has a history of swinging big on meme coins and NFTs. He's the mind behind the controversial Boba Oppa memecoin, which faced backlash after a $40M presale and a sharp price drop post-launch, as reported by CoinMarketCap.

Just weeks ago, he exited a $25M position in HYPE (another meme token) with a $4M loss, according to MEXC. And earlier this year, his trades on XPL longs turned a $44M profit into a $9M unrealized loss, per Cointelegraph. These patterns show why Machi is one of the most watched on-chain traders, as noted by DropsTab.

The Market Crash That Triggered the Liquidations

The crypto market has been in turmoil lately, with ETH dipping below key support levels. This crash forced Machi's leveraged longs into liquidation territory. His positions were reportedly liquidated multiple times, with a liquidation price around $3,992—meaning if ETH fell below that, his trades got auto-closed.

This event echoes other high-profile wipeouts, like trader James Wynn's $100M loss earlier this year, as mentioned in Blockchain News. It serves as a stark reminder for meme token enthusiasts: while memes like PEPE or HYPE can pump hard, betting big on majors like ETH with leverage can erase gains in a flash.

Lessons for Meme Token Traders

Machi's story is a cautionary tale for anyone diving into meme coins or perp trading. Here are a few takeaways:

• Risk Management is Key: Leverage can multiply wins, but it also amplifies losses. Always use stop-losses and avoid over-leveraging.
• Market Volatility: Crypto crashes can happen fast—stay informed with tools like on-chain trackers from Lookonchain.
• Diversification: Even whales like Machi, who made fortunes on NFTs and memes, aren't immune. Spread your bets across assets.
• Emotional Control: As one reply to the thread noted, if you get rekt, take a break and seek support. Trading isn't worth your mental health.

Despite the setback, Machi has bounced back before. In August, he turned his portfolio positive with over $30M in profits from ETH and HYPE trades, per CryptoRank. Will he do it again? Only time will tell, but his moves will keep the meme community buzzing.

For more insights on meme tokens and crypto whales, check out our knowledge base at Meme Insider. Stay tuned for updates on the next big pump—or dump.