Machi Big Brother $74M Losses Mount After High-Leverage Ethereum Bets

Steady attention without excessive speculation.

Background

Jeffrey Huang is a Taiwanese-American entrepreneur who transitioned from music into tech and crypto. He founded 17 Media in 2015, later merging into M17 Entertainment Group, and entered crypto in 2017 with the launch of the Mithril (MITH) token.

His involvement in crypto has been controversial. In 2022, blockchain investigator ZachXBT accused him of running a $5 million pump-and-dump involving MITH, an allegation Huang denied before later dropping the lawsuit.

Huang later became a major NFT collector in the Bored Ape Yacht Club ecosystem and a contributor to PleasrDAO. His trading activity intensified in 2025, particularly on perpetual trading platforms.

How Machi Big Brother $74M Losses Built Up

The losses did not occur in a single event. Instead, they developed over months of aggressive trading. In early 2025, Huang recorded $44 million in profits through leveraged trading strategies. However, this success reversed sharply in October 2025 when market conditions shifted.

Since then:

• Over 260 liquidation events were recorded
• A Martingale-style strategy of doubling down on losing positions amplified risk
• Positions were opened near ETH highs around $4,700
• Liquidation thresholds were frequently set close to $3,000 ETH levels

By February 2026, losses had already crossed $71 million, with repeated liquidations reducing his account to under $1 million before the latest wipeout pushed total losses to $74 million.

Src: Arkham Intelligence

High-Leverage Ethereum Strategy Behind the Losses

Machi Big Brother incurred $74M in losses by pursuing a strategy that relied on high-leverage long positions in Ethereum and other assets.

Huang frequently opened positions using 25x to 40x leverage, often near market peaks around $4,700 ETH. Machi Big Brother funded these trades through cross-margin exposure, spot ETH sales, and asset rotations, including funds linked to PleasrDAO holdings.

When ETH prices dropped sharply during market volatility, these positions quickly reached liquidation thresholds. A single 9 percent ETH drop linked to geopolitical developments triggered cascading liquidations, erasing multiple positions within hours.

Over time, Huang’s approach reflected a Martingale-style pattern, where positions were increased during downturns in an attempt to recover prior losses. This amplified risk and accelerated the pace of liquidation events.

What happens next for Machi Big Brother trading activity

It remains unclear whether Huang will continue trading on Hyperliquid or shift strategies following the losses. His previous trading history shows both large gains and significant drawdowns, suggesting a high-risk trading profile.

Going forward, the market will likely watch closely for any new onchain positions or strategy changes, as well as broader implications for whale behavior in leveraged DeFi markets.