The high-leverage story is making the rounds again, and once again, the main character is Machi Big Brother.
According to Odaily / Hyperbot (around 10/19): After being completely liquidated, he quickly jumped back in, opening another 25x ETH long on an on-chain perpetual market. The position was about 1,745 ETH, with a notional value of roughly $4.2 million and unrealized profit of around $40,000; the liquidation price was about $2,364. A few days earlier, there was also that string of comeback trades from 290 to 1,325—get liquidated, open again, and the comments section gets livelier than the market. Further back, the ETH long with nearly $1 billion in notional value that was stopped out in early October is part of the same narrative: high leverage, close to liquidation, and plenty of spectators.
Entertaining, sure. But at 25x and close to the liquidation price, volatility is basically fuel. You can keep opening new positions, but your account might not survive a second hit. Don’t treat a celebrity’s position as a signal: you can’t see their margin strategy or how they add to the position, and you can’t replicate their risk tolerance. Forty thousand dollars in unrealized profit sounds reassuring, but it’s almost negligible against $4.2 million in notional value—a small move toward the liquidation price, and emotions may break before the market does.
My rule for managing my own positions: I just log this kind of news; I don’t add directional exposure. If you want to follow the narrative, first size your risk capital on the assumption it could go to zero, then think about direction. $ETH is already quite volatile, and when weekend liquidity is thin, definitely don’t play right next to the liquidation price.
Stories are for watching, not for prompting you to open a position. If you want to ride an emotional rebound, fine—but first cut your position down to a size you can sleep with.
$ETH
According to Odaily / Hyperbot (around 10/19): After being completely liquidated, he quickly jumped back in, opening another 25x ETH long on an on-chain perpetual market. The position was about 1,745 ETH, with a notional value of roughly $4.2 million and unrealized profit of around $40,000; the liquidation price was about $2,364. A few days earlier, there was also that string of comeback trades from 290 to 1,325—get liquidated, open again, and the comments section gets livelier than the market. Further back, the ETH long with nearly $1 billion in notional value that was stopped out in early October is part of the same narrative: high leverage, close to liquidation, and plenty of spectators.
Entertaining, sure. But at 25x and close to the liquidation price, volatility is basically fuel. You can keep opening new positions, but your account might not survive a second hit. Don’t treat a celebrity’s position as a signal: you can’t see their margin strategy or how they add to the position, and you can’t replicate their risk tolerance. Forty thousand dollars in unrealized profit sounds reassuring, but it’s almost negligible against $4.2 million in notional value—a small move toward the liquidation price, and emotions may break before the market does.
My rule for managing my own positions: I just log this kind of news; I don’t add directional exposure. If you want to follow the narrative, first size your risk capital on the assumption it could go to zero, then think about direction. $ETH is already quite volatile, and when weekend liquidity is thin, definitely don’t play right next to the liquidation price.
Stories are for watching, not for prompting you to open a position. If you want to ride an emotional rebound, fine—but first cut your position down to a size you can sleep with.
$ETH