Machi Big Brother’s Startling $9M Hyperliquid Loss Sparks XPL Token Recovery Bets

A dramatic financial shift has recently captured the attention of the cryptocurrency community. High-profile investor Jeffrey Huang, known as Machi Big Brother, now faces a substantial unrealized trading loss on the decentralized exchange, Hyperliquid. This development comes after a period of significant profit, highlighting the extreme volatility inherent in digital asset markets.

Machi Big Brother’s Staggering Hyperliquid Performance

Taiwanese music celebrity and prominent digital asset investor Jeffrey Huang, widely recognized as “Machi Big Brother,” is navigating a nearly $9 million floating loss. This substantial setback occurred on his Hyperliquid account. Just 13 days prior, this same account had reported an impressive $44 million in profit. The account, identified as “0x020c,” is linked to Huang, a well-known Bored Ape Yacht Club collector.

His current unrealized loss totals approximately $8.7 million. This figure stems from a 5x leveraged long position. The bet centers on the price appreciation of the Plasma (XPL) token. Blockchain data from Hyperdash confirms these figures. The position carries a liquidation threshold of $0.5366. Despite the steep decline, Huang has maintained the trade. This decision has already incurred over $115,000 in funding fees. He also manages a 15x leveraged Ether (ETH) long position. This ETH trade is worth $1.2 million in funding costs. It currently shows about $534,000 in unrealized profit, with liquidation set at $3,836.

This floating loss represents a “massive hit” for the investor. OnChain Lens, a blockchain data platform, noted this dramatic swing in a recent X post. However, despite the current losing position, Huang’s account remains profitable overall. His total combined Profit and Loss (PnL) stands at over $11.6 million.

The High-Stakes XPL Token Bet

The recent financial development follows another notable event. Just a week earlier, Huang exited a $25 million Hyperliquid (HYPE) position. This exit resulted in a $4.45 million loss on September 29. BitMEX co-founder Arthur Hayes’ family office fund, Maelstrom, had issued a warning. The warning concerned approaching HYPE token unlocks. These unlocks would pose the token’s “first true test” on November 29, when a 24-month vesting schedule begins. This context is vital when examining the current XPL token position.

Interestingly, other significant investors, often called crypto whales, are also placing bets on the Plasma token’s price recovery. This collective action suggests a belief in the token’s long-term potential. Whale wallets have substantially increased their XPL token holdings. They acquired over $1.16 million worth of net tokens in the past week. This accumulation occurred across 226 wallets. Simultaneously, $3.83 million worth of XPL tokens departed exchanges during the same period. Data from crypto intelligence platform Nansen confirms these movements. This trend indicates a strong holding sentiment among large investors, despite current price pressures.

Crypto Whale Movements Signal Mixed Sentiment

Further analysis of crypto whale activity reveals more details. A specific whale wallet, identified as “0xd80D,” acquired a massive $31 million worth of XPL tokens. This purchase took place on Hyperliquid earlier this Wednesday. Consequently, this wallet’s total XPL holdings now exceed $40.2 million. Blockchain data platform Lookonchain reported this significant acquisition in a Saturday X post. Such large-scale accumulation by individual whales underscores a strong conviction in XPL’s future. These actions often influence broader market sentiment, signaling potential upward momentum.

However, an important counteracting factor looms. The Plasma vesting schedule is set to unlock $90 million worth of XPL tokens. This major event will occur on October 25. Such large unlocks typically threaten increased selling pressure. This particular unlock represents the month’s third-largest token unlock by value, according to CryptoRank data. Therefore, while some whales accumulate, others might sell their newly unlocked tokens. This creates a complex dynamic for the XPL token’s price in the short term. The market must absorb this substantial influx of supply.

Navigating Potential Trading Loss and Upcoming Unlocks

The current situation for Machi Big Brother highlights the inherent risks of leveraged trading. His substantial unrealized trading loss on the XPL token position serves as a stark reminder. Despite his overall profitability, the fluctuating nature of crypto assets demands constant vigilance. Investors like Huang must manage significant capital, facing both immense gains and potential drawdowns. The decision to hold his leveraged XPL long position, despite mounting funding fees, reflects a strong belief in a future price recovery. This strategy, however, carries considerable risk, especially with impending market events.

The upcoming XPL token unlock on October 25 presents a critical challenge. A release of $90 million in tokens could significantly impact the market. This event could lead to increased supply, potentially driving prices down. Large investors, including whales, often anticipate these unlocks. They may adjust their strategies accordingly. Some might accumulate before the unlock, expecting a rebound. Others might prepare to sell into any potential bounce. This makes the next few weeks crucial for the Plasma token’s trajectory. Market participants will closely monitor whale activity and overall trading volumes. These indicators will provide insights into the token’s short-term future. The crypto market remains a high-stakes environment, characterized by rapid changes and substantial financial implications for all involved.