This week has been devastating to a number of leading cryptocurrency trading companies through high leverage trading.
In a single day, more than $300 million liquidations were registered, and more than seven renowned traders on Hyperliquid are already in the black among the top 455 million in the last eight months based on Hyperdash and Lookonchain data.
Following liquidation, Machi big brother plummets to profits
Jeffrey Huang, a crypto figure under the alias of Machi Big Brother, got a severe setback when the price of Ethereum fell into a free fall that fully liquidated his leveraged positions. His balance dropped to only 16.77, after the Monday sell-off of the ETH worth 835 ETH, equivalent to approximately $3.09 million.
Machi had already transformed market volatility into huge profits with at one point having made a fortune in the tune of $44.8 million. Statistics have indicated that his overall profit and loss are reduced to $15 million. Nonetheless, he reopened a second 25x long on 100 ETH at a value of $364,000 with a small unrealized gain of $133,000, by comparison with previous gains.
James Wynn and Qwatio face tremendous losses
James Wynn who was also a leading trader in Hyperliquid saw his fortunes turn sharply in the wrong direction. He is at a loss of $21.9 million out of the profit amount of a 87 million. In the last two months, he had suffered 45 liquidations. Wynn has recently recovered slightly with a little unrealized profit of $66, 465 on a short position on Bitcoin.
High-risk strategies were also practiced by Trader Qwatio who incurred heavy losses. He established short positions on Bitcoin and XRP with a combined value of more than $157 million USDC after incurring a deposition of $4.22 million USDC to restore his portfolio. Rebounds in the market erased over $1.2 million in his portfolio. He came back later with a 20x short on $6.17 million XRP yet losses were still incurred. His cumulative loss has now reached more than $28.8 million eliminating all the gains.
Other top traders dramatic reversals
In addition to these three, Lookonchain came up with four other traders who were caught in the recent market turmoil. Aguila Trades which was the leading Hyperliquid that used to be profitable with the profit of $41.7 million is now in a loss of $37.6 million. The same was also the case with another trader referred to as the 14-win-streak trader who experienced a reversal of $33 million in profits to $30.2 million in losses.
The biggest loss was documented at over $45.3 million. One trader who was dubbed a low-stack degen is said to have won $43 million off that initial $125,000 and had it all before losing everything to end up with $180,000 in debt.
Brett Harrison, the former FTX US president, blamed overleverage in the crypto markets. He termed it as bad and reckless and pointed out that derivatives exchanges were supposed to encourage stability and not the liquidation that was fast.
This has played out in the last week as the risks of extreme leverage trading comes to light. With the crypto market being volatile, such losses represent how easily fortunes can turn against when taking a risk takes precedence over prudence.
