Machi Big Brother Cuts ETH Long by 52%, Liquidation Gap Narrows to 1.21%

Woofun AI reports that Machi Big Brother executed a strategic pivot on Hyperliquid, slashing his leveraged Ethereum long by more than 50% while selling three Bored Apes at a loss, leaving the account perilously close to its liquidation threshold.

Hyperliquid fill data corroborated three specific close-long transactions on July 31 at 1:47:16 p.m., 2:04:59 p.m., and 2:06:57 p.m. UTC, which closed 700 ETH, 560 ETH, and 448 ETH respectively. These moves totaled 1,708 ETH in volume and resulted in approximately $96,301 in aggregate negative closed PnL, marking a decisive reduction in exposure during a volatile period.

Woofun AI on-chain data shows the position shrank from 5,264 ETH on July 14 to 2,800 ETH, a 46.81% reduction, while the liquidation price climbed from $1,756.76 to $1,863.08, a rise of $106.32. By Aug. 13, the long was 52.51% below its July size, with the liquidation price sitting $102.39 above the initial baseline, indicating that deleveraging did not immediately stabilize the risk profile.

Further adjustments on Aug. 14 saw another 300 ETH removed, easing the liquidation price by $3.93 to $1,843.40, leaving the account balance sub-$100,000. The remaining 2,500 ETH long now faces a liquidation price only 1.21% away from the current Ethereum midpoint, highlighting the fragility of the position despite the significant drawdown.

The insufficiency of NFT sales to secure leveraged trades is evident, as converting Bored Apes into fungible value failed to offset the rising liquidation threshold. This dynamic underscores that account equity remains highly sensitive to timestamped gaps in price action, leaving the position vulnerable to immediate market shifts.