Machi Big Brother Sells Three Mutant Apes at 1 ETH Each as Leveraged Ethereum Long Faces Liquidation Risk
Machi Big Brother, the crypto personality also known as Jeff Huang, sold three Mutant Ape Yacht Club (MAYC) NFTs for 1 ETH each on Oct. 23, while his Ethereum trading account on Hyperliquid showed an unrealized loss of approximately $27,900 and a liquidation price less than 1% below the market.
On-chain records link the sales to machibigbrother.eth, a wallet associated with Huang. The transactions involved Mutant Ape Yacht Club NFTs #5042, #11697 and #2001, with each selling for 1 ETH. The sales extended an earlier reduction in the wallet's NFT holdings as the account maintained a highly leveraged long position on Ethereum.
Mutant Ape Sales Result in Significant Losses
NFTs #5042 and #11697 had been held for three years. The wallet originally purchased #5042 for 6.13 ETH and #11697 for 7.5 ETH, bringing their combined acquisition cost to 13.63 ETH. Their sales generated 2 ETH in gross proceeds, representing an 11.63 ETH loss before accounting for any other costs.
Both transactions were processed through OpenSea's smart contract. NFT #5042 sold at 00:09 UTC on Oct. 23, followed by #11697 at 00:58 UTC. Each transaction returned 0.99 ETH to the seller after a 0.01 ETH fee. The third NFT, #2001, sold at the same 1 ETH price at 04:12 UTC.
With ETH trading near $2,359 on Saturday afternoon, each NFT sale was worth approximately $2,360. An on-chain tracking post published at 02:00 UTC on Oct. 23 highlighted the transactions and reported a combined loss of 11.28 ETH. However, the purchase and sale prices listed in the post imply a loss of 11.63 ETH, leaving a 0.35 ETH discrepancy that was not explained.
The wallet had also reduced its exposure to other NFTs two to three months earlier, selling several Bored Ape Yacht Club NFTs for between 8.3 ETH and 10 ETH each. Those transactions were also recorded on the Ethereum blockchain.
Hyperliquid Position Sits Near Liquidation
The more immediate financial risk is Huang's leveraged Ethereum position on Hyperliquid. According to the platform's public account data, the machibigbrother.eth account had a net value of approximately $21,700 as of 09:35 UTC on Oct. 24.
The account held a single long position of 315 ETH contracts using 25x leverage. The position had a notional value of roughly $743,000 and an average entry price of $2,447.57. With ETH trading around $2,359 at the cited reading, the position carried an unrealized loss of approximately $27,900.
The position's liquidation price stood at $2,336.93, about $22 below the quoted market price. That placed the position less than 1% above its liquidation threshold. A further decline of approximately $22 from the cited market level could trigger automatic liquidation, while the account's withdrawable balance was reported at zero.
ETH had recently fallen to $2,371 following a market session described in the source material as Nasdaq's worst day since June. The price movement left limited room between the market and the account's liquidation level.
Reason for NFT Sales Remains Unconfirmed
The on-chain tracking post suggested the NFT sales could be intended to raise funds for further trading on Hyperliquid and Papertrade, a perpetuals platform launched on Oct. 10 that offers leverage of up to 1,000x. However, that explanation remains an inference. The post did not provide transaction records showing that the ETH proceeds were transferred to either platform.
The NFT sales exchanged collectible assets for ETH, but the proceeds from each transaction were small relative to the notional value of the 315 ETH leveraged position. The account's immediate exposure therefore remained tied primarily to Ethereum's price movement and the distance between its average entry price and liquidation threshold.
At the latest account reading cited, 09:35 UTC on Oct. 24, the Ethereum long remained open. Whether the position could avoid liquidation depended on subsequent price movements around the $2,336.93 threshold.
source: en.coinotag
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
Check out other news and articles on Google News
Disclaimer:
The articles on Hokanews are here to keep you updated on the latest buzz in crypto, tech, and beyond—but they’re not financial advice. We’re sharing info, trends, and insights, not telling you to buy, sell, or invest. Always do your own homework before making any money moves.
Hokanews isn’t responsible for any losses, gains, or chaos that might happen if you act on what you read here. Investment decisions should come from your own research—and, ideally, guidance from a qualified financial advisor. Remember: crypto and tech move fast, info changes in a blink, and while we aim for accuracy, we can’t promise it’s 100% complete or up-to-date.