Machi Loses $269,000 on ETH Liquidation, Reopens Position Within Minutes
A major ETH trader took a heavy loss, then bet again within minutes
A cryptocurrency trader known as Machi lost about $269,225 when their Ethereum position was force-sold on the derivatives exchange Hyperliquid early on Oct. 15. Rather than stepping away, the tracked wallet reopened a new long position—a bet that prices would rise—just seven minutes later, eventually building it to 2,500 ETH.
The episode highlights the extreme volatility of leveraged trading, where positions are automatically closed by an exchange if the value of the collateral falls below a required threshold, known as maintenance margin.
What happened during the liquidation and rebuild
- Machi’s wallet had 1,650 ETH force-liquidated across 232 separate fills between 3:22 a.m. and 3:24 a.m. BST on Oct. 15, with liquidation prices between $2,330.30 and $2,380.30 per ETH.
- The liquidations recorded approximately $269,225 in realized trading losses, excluding about $1,087 in fill fees.
- Buying activity began at 3:31 a.m. BST—just 6 minutes and 55 seconds after the last forced fill.
- By 1:16 p.m. BST, the wallet had rebuilt a 2,500 ETH long position at an average entry price of approximately $2,370.34.
- Prior to the liquidation, the wallet had voluntarily closed another 4,000 ETH between 2 p.m. BST on Oct. 14 and the morning of Oct. 15, recording about $302,312 in realized losses.
- A transaction of 250,000 USDC—a stablecoin pegged to the US dollar—arrived at the wallet’s spot balance at 10:48 a.m. BST on Oct. 15.
What the Hyperliquid data shows
Hyperliquid’s publicly accessible blockchain explorer confirms the liquidation fills for the address 0x020cA66C30beC2c4Fe3861a94E4DB4A498A35872. The platform’s liquidation rules state that when a position’s equity drops below maintenance margin, the exchange forcibly sells the position. If the order-book sales restore enough margin, any remaining collateral stays with the trader’s account, allowing them to trade again.
Context from other sources
The wallet is tracked by on-chain analytics firm Lookonchain, which identified it as belonging to Machi. CryptoSlate previously reported on Machi’s positions in August, noting at that time a 2,500 ETH long with a liquidation price of $1,859.15.
At the time of the liquidation, Ethereum was trading around $2,362.88, down from earlier levels. The broader market was also seeing significant pressure: US spot Bitcoin ETFs recorded $261.4 million in net outflows and US spot Ether ETFs recorded $129.5 million in net outflows on Oct. 14, according to data from Farside.
What is confirmed
The liquidation event, the timing, the number of ETH involved, the loss figures, and the rebuild of a new 2,500 ETH long are all confirmed by Hyperliquid’s on-chain data as reported by CryptoSlate and Lookonchain.
Why this matters for leveraged traders
Machi’s actions illustrate how leveraged futures trading—where traders borrow funds to amplify their positions—can lead to rapid and significant losses during volatile markets. The fact that the trader was able to reopen a larger position so quickly suggests they had access to additional capital, as Hyperliquid liquidations can leave remaining funds available for further trading.
Where to find the source data
- Hyperliquid wallet explorer
- Hyperliquid USDC transaction
- Hyperliquid liquidation rules
- Lookonchain tracking report
Background sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.