Ether sees partial liquidation of Machi's 25x long amid drop

Market drop triggered Machi Big Brother partial liquidation on Hyperliquid

Machi Big Brother has partially liquidated his positions again after a market drop triggered risk thresholds on the Hyperliquid derivatives exchange. According to Lookonchain, the selloff forced a partial liquidation on his Ethereum (ETH) long position, reflecting the sensitivity of high leverage to swift price moves.

The recurrence fits a broader pattern. As reported by TheStreet, he has been liquidated 145 times since the Oct. 11 crypto crash, underscoring how quickly losses can compound when markets turn.

Based on data from Arkham Intelligence, his Hyperliquid account value recently fell below $1 million, suggesting limited available margin during drawdowns relative to position size.

Why it matters: 25x leveraged ETH long position risk

Phemex News reported that his largest exposure has been a 25x leveraged ETH long position that has already faced partial liquidation, with total assets cited at about $14.85 million across spot and contracts. With 25x leverage, even small adverse moves can rapidly erode equity and push the margin ratio toward maintenance levels.

MEXC News has also detailed a $27.5 million drawdown following repeated partial liquidations, noting that injections of additional margin struggled to offset loss acceleration during the downturn. This illustrates how topping up collateral during volatile phases may not stabilize a highly levered book if price pressure persists.

Market conditions likely amplified the stress on leveraged longs. Ahead of the session’s close, broader risk assets softened; “Bitcoin Falls Below $65,000 in Latest Bout of Tariff Uncertainty,” said Bloomberg, capturing the risk-off tone that coincided with crypto-wide drawdowns. At the time of this writing, that outlet also showed BTC-USD down 4.66% and ETH-USD down 5.78% on the day.

Hyperliquid liquidation mechanics and trader takeaways

Hyperliquid liquidation mechanics: partial vs full triggers

Hyperliquid liquidation mechanics generally mirror derivatives norms: positions are marked to a fair price, and if the account’s margin ratio slips to the maintenance threshold, the system initiates liquidation. A partial liquidation typically reduces position size to restore the margin ratio above maintenance, while a full liquidation occurs only if equity is insufficient even after step reductions.

For a 25x leveraged ETH long position, the initial margin is thin relative to notional exposure. A small percentage decline in ETH can consume a disproportionate share of equity, triggering partial liquidation to cut size and free margin. If volatility persists and equity cannot cover losses, sequential partials can occur and, in worse cases, culminate in a full closeout.

Risk lessons: managing 25x ETH longs under volatility

High leverage compresses error tolerance. In stressed markets, traders may reduce leverage, add pre-committed buffers above maintenance margin, and size positions so that a routine swing does not trip liquidation bands.

Funding, open interest, and cross-market liquidity can accelerate moves against crowded trades. During sharp repricings, slippage and cascading liquidations can widen realized losses relative to model assumptions, so risk controls should account for gap risk and impaired exit quality.