In the wild world of crypto trading, even the big players aren't immune to market slumps. A recent tweet from Onchain Lens @OnchainLens highlights how Machi Big Brother, a well-known trader with the handle @machibigbrother, is currently staring down a hefty floating loss exceeding $20 million on his long positions.

For those new to the lingo, a "floating loss" (or unrealized loss) is the paper loss on a position that hasn't been closed yet. It's like watching your stock drop but not selling it— the loss isn't locked in until you do. Machi's bets are on Ethereum (ETH) at 15x leverage, and two meme tokens, HYPE and PUMP, both at 5x leverage. Leverage amplifies gains but also magnifies losses, turning small market moves into big swings.

The data comes from Hyperliquid's dashboard hyperdash.info, a platform for perpetual futures trading on blockchain. Here's a snapshot showing the overall account stats, with a perp equity of about $20.7 million and a massive realized PnL dip.

Diving deeper, the positions break down like this: a $115 million long on ETH, $28 million on PUMP, and $26 million on HYPE. All are in the red, with ETH showing a $7.3 million unrealized loss, PUMP at $9 million down, and HYPE losing $4.2 million. To dodge liquidation—where the platform automatically closes positions to prevent total wipeout—Machi has had to partially exit these trades at a loss.

Meme tokens like PUMP and HYPE are all about hype and community buzz, often launched on platforms like Pump.fun, which makes creating and trading them a breeze on Solana. PUMP, for instance, ties into the meme coin launchpad vibe, while HYPE plays on the excitement factor in crypto. But as the broader market—including majors like ETH—dips, these high-beta assets (meaning they swing harder than the market) get hit even worse.

This situation underscores the double-edged sword of leveraged trading in memes. On one hand, it's a way to supercharge returns during bull runs. On the other, a downturn can force tough decisions, like cutting losses to stay afloat. For blockchain enthusiasts and meme token hunters, it's a reminder to manage risk, perhaps with stop-losses or lower leverage.

As the crypto space evolves, stories like Machi's keep us grounded. Whether you're a seasoned trader or just dipping your toes into meme coins, staying informed on on-chain data and market trends is key. Check out more insights on meme tokens at Meme Insider to level up your game.