Machi's $12.25M Hyperliquid Run Ends, Then a 25x ETH Long Starts

Jeffrey Huang, known as Machi Big Brother, saw his Hyperliquid trading account fall from a $12.25 million peak to about $21,800 after a liquidation on Oct. 15, according to Lookonchain, which tracks the wallet. He was back on the venue shortly after with another Ethereum long, opened at 25x leverage.

The address is attributed to Huang by that tracking. No page from him or from Hyperliquid names it as his, so the link between the trader and the account rests on Lookonchain's identification rather than a primary confirmation. The wallet's own records carry the detail below.

Four Fills Took 1,650 ETH in About Three Minutes

Hypurrscan's log for the wallet lists four ETH-USD perpetual futures liquidations: 380 ETH at $2,379, 270 ETH at $2,374, 200 ETH at $2,355, and a final 800 ETH at $2,331. They landed within about three minutes and cover 1,650 ETH in total, the last clip clearing $48 below the first.

A second read of the same episode, from the wallet's Hyperliquid data, breaks it into 232 liquidation fills between 3:22:25 a.m. and 3:24:32 a.m. BST, executed between $2,330.30 and $2,380.30, for about $269,225 in realized trading losses before roughly $1,087 in fill fees. From 2 p.m. BST on Oct. 14 to the last forced fill, the wallet also closed about 4,000 ETH on its own terms, at about $302,312 in realized losses before fees.

Those fill-level numbers, and the position figures that follow, rest on a single dataset. Hyperliquid's explorer page for the address could not be read, so the fill count, the execution range and the loss totals have not been checked against the venue's own record.

A New Long Seven Minutes After the Last Fill

Buying restarted at 3:31:27 a.m. BST, roughly seven minutes after the final forced fill. By 3:56 a.m. the wallet held a 320 ETH long at an average entry of about $2,355.53. It kept adding: by 1:16 p.m. BST the position stood at 2,500 ETH, at an average entry of about $2,370.34, larger than the 1,650 ETH that had just been sold out from under it. A separate Hyperliquid transaction shows 250,000 USDC arriving in the address's spot balance at 10:48 a.m. BST. ETH was quoted at $2,362.88 at 1:14 p.m. BST.

Why a Liquidated Account Can Trade Again at Once

Hyperliquid's own documentation sets out the mechanics. A liquidation event happens when a trader's positions move against them to the point where account equity falls below the maintenance margin. Most liquidations on the venue go straight to the order book, which lets other users compete for the flow and leaves any remaining margin with the liquidated trader; unlike centralized exchanges, Hyperliquid charges no clearance fee on liquidations.

Size decides how fast that plays out. For a liquidatable position larger than 100,000 USDC, only 20% is sent as a market liquidation order, followed by a 30-second cooldown, after which liquidation orders are for the entire position. Maintenance margin is half the initial margin at maximum leverage, which runs from 3x to 40x, putting it between 1.25% and 16.7% depending on the asset. Positions below two-thirds of maintenance margin can be taken over by the liquidator vault, a component strategy of HLP, and profit and loss from liquidations goes entirely to the community through HLP.

That is the structure behind the sequence. Forced sales into the book restored the margin the account needed, the leftover collateral stayed with the trader, and the wallet was free to size up again the same morning.

Derivatives Liquidations Ran Heavier Into the Move

The episode landed in a heavier derivatives session. Bitget Research put liquidations across crypto derivatives at about $811 million on Oct. 14, with open interest near $140.9 billion after the selloff, the day the wallet was already cutting its position.

The rebuilt 2,500 ETH long sits at an average entry of about $2,370.34, above the $2,331 that the last forced fill printed at. A fall back through the $2,330 to $2,380 band the liquidation cleared in would put the position into the same process: forced sales hitting the order book, and whatever margin survives staying with the account.