Three Bored Ape sales resulted in significant losses for the leveraged Ethereum account tracked by Lookonchain as Machi Big Brother. This led to a month-long contraction in the account, with the ETH long position being reduced by more than half by Aug. 14. Despite this reduction, the market remained dangerously close to the liquidation line of the account.
At 3:51:43 p.m. UTC, Hyperliquid’s public Info API revealed that the address held a 2,500 ETH long position with a 25x leverage setting and a liquidation price of $1,859.15. Just 14 seconds later, the ETH midpoint on the platform was $1,881.65, leaving a gap of $22.50 between the two figures. This represented a 1.21% difference, with the midpoint slightly higher than the reported liquidation price.
The position had shrunk significantly from the 5,264 ETH long position reported on July 14, with the liquidation price also increasing. The account, labeled as machibigbrother.eth on Etherscan, showed signs of stress as it struggled to maintain its position in the market.
The sequence of events leading to the reduction in the ETH long position and the increase in the liquidation price was clearly outlined in a table provided in the article. The sales of Bored Ape NFTs contributed to the account’s stress, but the exact impact of these sales on the account’s survival was not fully understood.
The account’s risk profile was constantly changing, influenced by various factors including position size, asset sales, and market conditions. Converting NFTs into fungible value did not guarantee safety for leveraged trades, as evidenced by the account’s precarious position despite the NFT sales.
Overall, the article highlighted the complex nature of leveraged trading and the importance of closely monitoring account positions and market conditions to avoid liquidation. The interconnectedness of asset sales, position size, and liquidation thresholds was emphasized throughout the piece, underscoring the volatile nature of leveraged trading in the cryptocurrency market.
