On-chain wallet data show that machibigbrother.eth had built four long perpetual positions worth $123.72 million by 18:00 on Aug. 24, supported by roughly $9.44 million in principal and carrying overall leverage of about 13.1 times. The account’s largest position was in ETH, where a decline of about $234 from the reported price near $2,463 would reach its $2,229 liquidation level.
The wallet, commonly associated with NFT collector Machi, held total account assets of $10.07 million at the time of the snapshot. Its open positions were showing about $1.435 million in combined unrealized gains, though nearly all of that performance came from ETH. The account had also accumulated approximately $256,000 in funding costs, recurring payments that perpetual futures traders pay or receive to keep contracts aligned with the spot market.
The setup leaves little room for a sharp reversal in ETH. With 59% of the wallet’s total exposure concentrated in the asset, ETH was about 2.9% above the reported breakeven price and carried an unrealized gain of roughly $2.36 million. The other three long positions—HYPE, BTC and PUMP—were underwater, with combined unrealized losses of about $920,000.
Eth gains are supporting weaker positions
The wallet’s current book illustrates how a profitable leveraged position can support a much larger portfolio while also increasing its vulnerability. ETH’s gains had expanded the account’s available margin, enabling the trader to maintain exposure far above the cash value of the account.
That approach, often called rolling profits into margin, can compound gains during a sustained rally. A trader whose collateral rises alongside an asset price can open additional contracts or hold existing ones with greater flexibility. The same mechanism works in reverse when prices fall: unrealized gains shrink, margin requirements become harder to meet, and positions can be closed automatically if collateral drops below the platform’s maintenance threshold.
The ETH position was closest to that threshold. A move from roughly $2,463 to $2,229 represents a decline of about 9.5%, a range that can occur quickly in crypto derivatives markets during a broad selloff. Liquidation would not necessarily mean every asset in the wallet disappears, since outcomes depend on the platform’s margin rules, execution prices and whether collateral is shared across positions. It would place the account’s largest directional bet under immediate pressure.
The reported $9.44 million in principal against $123.72 million in gross position value also means modest percentage moves can have an outsized effect on the account. At 13.1 times leverage, a 1% adverse move across the full book would amount to roughly $1.24 million before funding and trading costs, though the actual result would vary by token and position size.
A $150,000 trade grew into a $12.72 million position
The latest positions follow a rapid earlier trade in which Machi reportedly used $150,000 in capital to build a leveraged long worth $12.72 million within three days. That trade produced a reported profit of $12.50 million, equal to an approximately 84-fold increase on the original capital.
Such returns demonstrate the appeal of high-leverage perpetual trading during strong upward moves, but they also provide little protection once profits are committed to new exposure. The wallet’s recent structure suggests that prior gains were being used to support a larger set of long positions rather than being largely withdrawn or converted into less volatile collateral.
Funding fees add another pressure point. The reported $256,000 paid to maintain the four positions is a cost independent of whether the market ultimately rises or falls. When long-side demand is strong, funding commonly turns positive, requiring long traders to pay short traders at regular intervals. A trader can be directionally correct over a longer period and still see returns reduced by these payments.
Previous losses show the cost of concentrated leverage
The wallet has experienced similar volatility before. During a peak in mid-September 2025, figures described for the account placed its value near $60 million, with unrealized profit above $44 million to $45 million. An Oct. 11 market drop later liquidated long positions that included XPL and ETH, turning an estimated $15 million profit into losses exceeding $11 million, according to the reported account figures.
Lookonchain recorded 71 forced liquidations for the wallet during November 2025, the highest count among accounts it tracked that month. Separate figures cited for the six months before the current period put the number of forced closures at more than 335, with realized losses of roughly $75.19 million.
Repeated liquidations do not by themselves establish the precise condition of the current positions, but they show a trading history in which the account has repeatedly operated near margin limits. In that context, the relatively narrow ETH liquidation price carries more weight than the headline size of the open portfolio.
Nft sales have supplied margin
Machi has also sold NFTs to add capital for leveraged ETH positions in recent months. Lookonchain reported that 34 Bored Ape Yacht Club NFTs were sold in June for about 326 ETH, producing an aggregate loss of around 399 ETH. The proceeds were reportedly used to support margin for ETH longs.
On Aug. 5, BAYC #5670 sold for 9 ETH after being acquired for 84.99 ETH, representing an 89.4% loss in ETH terms. BAYC #5715 sold on Aug. 13 for 8.3 ETH, or about $15,500, compared with an initial purchase of 34.17 ETH, or roughly $64,600, a reported 75.7% loss.
OpenSea data cited in the report placed the wallet’s NFT holdings at 4,357 items valued around $3.17 million, including 128 BAYC valued at approximately $2.50 million and 102 Mutant Ape Yacht Club NFTs worth about $288,000. The wallet previously held around 300 BAYC, according to the same figures.
Selling illiquid collectibles to reinforce derivatives margin can extend the life of a position, but it also converts long-term holdings into collateral for short-term price risk. With ETH carrying the largest share of the account’s exposure and sitting closest to liquidation, the wallet’s outcome now depends heavily on whether that narrow margin buffer holds.
Leverage this insight by exploring how to avoid liquidation when trading high-risk crypto positions.
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