Machi Big Brother Hyperliquid Loss Nears $9M
Background: Jeffrey Huang’s Trading on Hyperliquid
Jeffrey Huang, widely known in the digital asset community as “Machi Big Brother,” is experiencing a significant floating loss on his Hyperliquid trading account. Previously celebrated for high-profile NFT investments and a strong presence in the Bored Ape Yacht Club, Huang’s account, identified as “0x020c,” is reported to be approaching a $9 million floating loss on decentralized exchange (DEX) Hyperliquid.
According to Cointelegraph reporting, blockchain data shows that just 13 days earlier, this account had posted profits of roughly $44 million. The major reversal comes from a leveraged long bet on the Plasma (XPL) token, with the 5x position now reflecting an unrealized loss of approximately $8.7 million. OnChain Lens noted on Wednesday through an X post that this loss marked a “massive hit,” with the liquidation threshold for the position set at $0.5366.
Market Reaction and Whale Activity
Despite the losses, Huang remains active in the market. He is also running a 15x leveraged long position on Ether (ETH), which has so far accumulated around $534,000 in unrealized profit with $1.2 million in associated funding fees. However, even factoring in these trades, his Hyperliquid account stands at a total profit and loss (PnL) of over $11.6 million.
Following a $4.45 million realized loss from an earlier $25 million position in Hyperliquid’s HYPE token (closed on September 29), market attention shifted toward overall whale activity in Plasma. According to on-chain data from Nansen, whale wallets have purchased over $1.16 million worth of XPL over the past week. In total, $3.83 million of XPL tokens have been moved off exchanges, signaling ongoing whale accumulation.
One notable wallet, “0xd80D,” accumulated $31 million in XPL on Hyperliquid in a single purchase, pushing its total XPL holdings above $40.2 million, as verified by Lookonchain via a Saturday X post.
Upcoming Vesting Event and Market Outlook
A key factor influencing market sentiment is the upcoming vesting schedule for Plasma. CryptoRank data indicates that $90 million in XPL tokens is set to be unlocked on October 25. This event represents the third-largest token unlock by value this month and could introduce significant selling pressure for XPL and potentially impact investors with leveraged positions, including Huang.
The recent volatility and liquidations follow a warning from Maelstrom, the family office of BitMEX co-founder Arthur Hayes, regarding the impact that vesting schedule unlocks could have on Hyperliquid tokens. Maelstrom cautioned that the unlocking of HYPE tokens, initiating its 24-month vesting period on November 29, could serve as a crucial market test.
Huang’s trading saga highlights broader trends in the cryptocurrency derivatives market, where rapid reversals and high leverage remain common. With the major XPL unlock ahead, investors and market analysts continue to monitor whale movements and liquidation thresholds closely.
What’s Next for Machi Big Brother and XPL?
As the October 25 Plasma vesting event nears, market participants remain alert to potential volatility and further floating losses among leveraged traders. Whether “Machi Big Brother” will adjust his strategies in response to mounting losses and upcoming unlocks is uncertain. In the meantime, whale accumulation and token migration trends are under continual observation for signals of market direction in both XPL and broader decentralized exchange activity.
Sources
Cointelegraph
