Machi Sells ETH to Fund Leveraged BTC, ETH and HYPE Longs Amid $27.5M Losses
Machi (wallet @machibigbrother) sold portions of his Ethereum holdings and small tokens to raise margin capital, then opened large leveraged long positions on Bitcoin (BTC), Ethereum (ETH) and HYPE via Hyperliquid. On-chain trackers show the wallet currently holds about 6,200 ETH (~$13.34M), 25 BTC (~$1.72M) and 55,000 HYPE (~$1.7M). Recent activity followed a partial liquidation that pushed cumulative losses above $27.5 million over 20 days; the account balance fell to roughly $92K after depositing and losing some $3.19M USDC on Hyperliquid. An open leveraged ETH position of 1,689.6 ETH (~$3.28M) shows a liquidation price near $1,929.08 per ETH. There is no public evidence of hedged shorts — positions appear directionally long. Traders are watching Ethereum’s nearby liquidation threshold and the potential for forced liquidations to amplify short-term volatility. Key points: raised margin by selling ETH, large leveraged longs on BTC/ETH/HYPE, total reported drawdown > $27.5M, ETH liquidation price ~$1,929, directional (unhedged) exposure on Hyperliquid.
Bearish
The news is bearish for short-term market stability. A high-profile wallet sold ETH to fund leveraged longs and has already suffered large drawdowns (>$27.5M) with recent partial liquidations. The open leveraged ETH position carries a near-term liquidation price (~$1,929) that has been tested in recent sessions. If ETH approaches that level, forced liquidations could trigger cascade selling and intra-day volatility across spot and derivatives markets. Directional, unhedged long exposure on Hyperliquid increases systemic risk because deleveraging events on one large account can rapidly move prices. Historically, similar cases (large leveraged traders getting liquidated) have produced sharp short-term drops and heightened funding-rate swings, even if longer-term fundamentals remain unchanged. For traders: manage risk around ETH price levels, tighten stops, avoid adding leverage near known liquidation bands, and monitor funding rates and order-book depth. Over the medium-to-long term the event is neutral-to-bearish depending on whether the trader’s positions are fully liquidated or he rebuilds positions; sustained deleveraging usually pressures prices, while isolated losses without mass liquidation have limited lasting impact.