Crypto leverage trading liquidations have surged past $300 million in the last 24 hours on platforms like Hyperliquid, wiping out gains for prominent traders. Seven key players have collectively lost $455 million over eight months due to high-risk positions in volatile assets like ETH, BTC, and XRP.
-
Recent liquidations exceed $300 million, impacting leveraged long and short positions across major exchanges.
-
Traders like Machi Big Brother and James Wynn face partial and full liquidations, reducing profits to minimal unrealized gains.
-
Over eight months, seven Hyperliquid traders lost $455 million total, per data from Hyperdash and Lookonchain analytics.
Crypto leverage trading liquidations hit $300M+ in 24 hours, devastating Hyperliquid traders with $455M losses. Discover risks and lessons from Machi Big Brother’s wipeout—stay informed to avoid max pain in volatile markets.
What Are Crypto Leverage Trading Liquidations?
Crypto leverage trading liquidations occur when a trader’s leveraged position falls below the required margin due to market volatility, forcing exchanges to automatically close trades to prevent further losses. In the past 24 hours, these events have surpassed $300 million across major platforms, highlighting the high-stakes nature of derivatives trading in assets like Bitcoin and Ethereum. Prominent traders on Hyperliquid have been hit hardest, with collective losses reaching $455 million over the last eight months, according to analytics from Hyperdash and Lookonchain.
Who Are the Top Losing Traders on Hyperliquid?
Leading the pack is Jeffrey Huang, known as Machi Big Brother, a Taiwanese-American tech entrepreneur whose aggressive long positions in Ethereum suffered a partial liquidation last Monday. He now holds 835 ETH valued at approximately $3.09 million, with a liquidation price set at $3,668.39. Since the October 11 market crash that erased $17 billion in long positions market-wide, Machi has injected $1.73 million to maintain his bets, only to see his account balance drop to under $90,000 following full liquidation amid downward ETH price pressure.
Machi’s trading journey turned from triumph to turmoil; he once profited $44.8 million but now stands at a combined profit and loss of $15 million, as tracked by Hyperdash. Recently, he initiated a new 25x leveraged long on 100 ETH worth $364,000, liquidation price at $3,546.43, yielding a modest unrealized gain of $133,000— a stark contrast to his overall setbacks.
James Wynn exemplifies the volatility’s toll, having peaked at $87 million in profits before plummeting to $21.9 million in losses. Hyperdash data reveals 45 liquidations in the past two months, yet Wynn notched a small unrealized profit of $66,465 on a Bitcoin short this week, offering a glimmer of recovery.
Qwatio, often dubbed a high-risk gambler, rebounded after September losses by depositing 4.22 million USDC into a new wallet on Hyperliquid. He then shorted 1,366.67 BTC worth $150 million at 40x leverage and 2.78 million XRP valued at $7.7 million at 20x leverage. The market’s rebound liquidated these positions, costing over $1.2 million, with BTC liquidation at $110,280 and XRP at $3.0665.
Undeterred, Qwatio closed shorts at a $3.4 million loss and reopened 20x shorts on 6.17 million XRP, liquidation at $2.9155. Between September 28 and October 1, he shed $101,000 on BTC and $315,000 on XRP, pushing total losses beyond $28.8 million and erasing prior $26 million gains, per Hyperdash records.
Lookonchain also spotlighted four anonymous traders facing similar reversals. Aguila Trades swung from $41.7 million profits to $37.6 million losses. The “14-win-streak trader” flipped from $33 million gains to $30.2 million deficits. The largest loser realized over $45.3 million in losses, while a “low-stack degen” trader grew $125,000 to $43 million before ending with an $180,000 loss.
Frequently Asked Questions
What Causes High Liquidations in Crypto Leverage Trading?
High liquidations in crypto leverage trading stem from extreme market volatility triggering margin calls on over-leveraged positions. With platforms like Hyperliquid offering up to 40x leverage, small price swings—such as the recent ETH dip—can force automatic closures. Data from Hyperdash shows $300 million liquidated in 24 hours, emphasizing the need for conservative risk management in derivatives markets.
How Can Traders Avoid Liquidation Losses on Hyperliquid?
To avoid liquidation losses on Hyperliquid, traders should limit leverage to 5x or less, maintain ample margin buffers, and use stop-loss orders against sudden volatility. Monitoring on-chain analytics from firms like Lookonchain helps anticipate risks, while diversifying positions reduces exposure to single assets like BTC or XRP, ensuring long-term sustainability over high-stakes gambles.
Key Takeaways
- Volatility Amplifies Risks: Over eight months, seven Hyperliquid traders lost $455 million due to leveraged bets on ETH, BTC, and XRP amid market swings.
- Recovery Is Possible but Rare: While James Wynn clawed back a small $66,465 profit on a BTC short, most face repeated liquidations without reversal.
- Prioritize Safe Practices: Reduce leverage, add margin proactively, and follow analytics to safeguard accounts from the $300 million daily liquidation waves.
Conclusion
The wave of crypto leverage trading liquidations on platforms like Hyperliquid underscores the perils of high-risk strategies, with traders like Machi Big Brother, James Wynn, and Qwatio collectively shedding hundreds of millions. As Hyperdash and Lookonchain data illustrate, even seasoned players succumb to volatility’s max pain. Former FTX US President Brett Harrison warns that extreme leverage fosters account blowouts rather than secure trading, urging a shift toward responsible practices. Looking ahead, as crypto markets evolve in 2025, traders who adopt measured approaches will better navigate uncertainties and capitalize on opportunities.
This business week has not been kind to the leverage trading community, as liquidations in the last 24 hours have once again crossed the $300 million mark and caused several traders to experience “max pain.”
The recent wave of liquidations on major crypto trading platforms has left several well-known traders with staggering losses. According to data from Hyperdash and on-chain analytics firm Lookonchain, seven prominent traders dominating activity on derivatives exchange Hyperliquid have collectively lost $455 million in the last 8 months.
Stay away from high-leverage trading. It might bring you big profits at first, but in the end, it’ll wipe out everything you’ve earned. Just ask the seven traders below. — Lookonchain (November 6, 2025)
Machi Big Brother, Qwatio, James Wynn soaking in losses
Top of the list of names painted in red is Taiwanese-American tech entrepreneur Jeffrey Huang, popularly known as Machi Big Brother. Last Monday, Machi faced a partial liquidation and was left holding 835 ETH worth around $3.09 million in leveraged longs, with a liquidation price of $3,668.39.
Machi Big Brother was partially liquidated again, now holding 835 ETH ($3.09M) in longs with a liquidation price of $3,668.39. Since the Oct 11 market crash, he has raised a total of $1.73M to keep longing — now he’s down to less than $90K. — Lookonchain (November 3, 2025)
Since the October 11 market crash that took away about $17 billion in long positions, Machi has added $1.73 million to sustain his positions. Monday’s downward momentum in ETH prices forced a full liquidation, reducing his account balance to just $16,77.
Machi had turned trading volatility into a winning streak, netting $44.8 million in profits. Now, data from Hyperdash shows that the figure has plunged to $15 million in total combined PnL. He reopened a 25x leveraged long worth $364,000 on 100 ETH, with a liquidation price of $3,546.43.
As of this reporting, that trade held an unrealized gain of just over $133,000, a rather mute figure compared to what he has lost.
James Wynn, who once held as much as $87 million in profit, sank to an all-time $21.9 million in losses, according to Hyperdash’s profit and loss tracker. Over the past two months, Wynn’s trading history has been marred by 45 liquidations, but he finally managed to turn a small corner this week with an unrealized profit of $66,465 on a BTC short bet.
Few traders wear the term “gambler” on the sleeve as diligently as Qwatio, who suffered heavy losses in September, only to return to Hyperliquid with a fresh wallet, depositing 4.22 million USDC to rebuild.
At the end of the last month in Q3, he opened short positions using BTC worth $150 million at 40x leverage and XRP valued at $7.7 million with 20x leverage. The trades counted for naught because the crypto market rebounded, wiping out over $1.2 million from his leverage trading portfolio.
Gambler Qwatio created a new wallet “0x9018” and returned to Hyperliquid with 4.22M USDC. He shorted 1,366.67 BTC ($150M) with 40x leverage and 2.78M XRP ($7.7M) with 20x leverage, resulting in a loss of over $1.2M. Liquidation price: BTC: $110,280 XRP: $3.0665… — Lookonchain (September 26, 2025)
Instead of cutting back, Qwatio closed his initial short positions on a $3.4 million loss, then re-entered the market with a 20x short on 6.17 million XRP at a liquidation price of $2.9155.
Per the gambler’s Hyperdash records, he made losses of $101,000 on BTC and $315,000 on XRP short leveraged bets between September 28 to October 1. Qwatio’s total sheddings went over $28.8 million, taking all his previous $26 million in profits down the drain.
Leverage traders lose over $100 million in market volatility
Machi Big Brother, James Wynn, and Qwatio are not the only ones sharing the spoils, as Lookonchain also identified four other unknown traders who suffered similar fates.
A trader named by the market tracking platform Aguila Trades led the Hyperliquid leaderboard with $41.7 million in profits, only to plunge to $37.6 million in losses as leveraged positions turned against him. Another trader, the “14-win-streak trader,” saw an even deeper profit-loss reversal, swinging from $33 million in profit to $30.2 million in losses.
The biggest loser overall per Lookonchain had a total realized loss exceeding $45.3 million, alongside a “low-stack degen” trader who had turned an initial stake of $125,000 into $43 million, only to end up losing $180,000 in the end.
Brett Harrison, the former president of FTX US, believes extreme leverage trading on volatile crypto assets is dangerous and irresponsible.
“I think it’s a major problem. It encourages people to blow out their accounts as fast as possible. The point of a derivatives exchange is to allow people to safely and securely, in a long-term fashion, establish open interest, not to try to blow out accounts and collect liquidation fees,” he surmised in a recent interview.
