Machi Little Brother shuts down Ethereum 10 times longer than Big Brother faces liquidation risk

Ethereum's recent price movements have left two popular on-chain traders, who go by the names machismallbrother and machibigbrother, in hot water, with each account reporting losses of millions of dollars on leveraged long positions. According to information provided by Onchain Lens, both companies are facing tremendous disruption and their subsequent actions in an ever-changing market remain uncertain.

Small Brother closes 10x Ethereum long with $1.55 million loss

According to Hyperliquid's shared dashboard screenshot, machismallbrother.eth just closed a long 5,000 Ethereum position with 10x leverage. The trade entry price was close to 3,123, but the subsequent decline brought the position down to significant negative points. The final net loss was $1,549,157.

While this was disappointing, the historical P&L for the account as a whole was very positive, with cumulative past profits on past perpetual trades of over $7.3 million. This means that even though recent positions have taken a good hit, the trader has a track record of making profits over the long term.

Big Brother still in trouble with 25x Ethereum long

Meanwhile, machibigbrother seems to be in an even worse position. The account still has a long position of 7,265 Ethereum with 25x leverage, giving the position a value of 23.55 million. Hyperliquid data shows a floating loss of more than 2.3 million that puts traders at risk of liquidation.

This position was entered at approximately $3,438, but since Ethereum is currently trading at approximately $3,129, the leveraged exposure resulted in a significantly higher drawdown.

The dashboard price is slightly lower than the current level of the market, raising the question of whether traders can sustain further downside pressure.

Market reaction and growing on-chain discussion

This became a hot topic of discussion on social media, especially when Onchain Lens shared a performance comparison of the two accounts. The post wondered if the smaller trader was following in his big brother's footsteps with similar leverage strategies and well-timed entries.

The pair's activity has been closely watched by traders in the cryptocurrency community, especially since trading with such high leverage tends to move large amounts of liquidity through exchanges such as HyperLiquid, creating and potentially influencing sentiment in leveraged markets.

Volatility continues as Ethereum struggles to recover

Ethereum’s recent price correction has put a strain on highly leveraged positions on the exchange. At a time of heightened volatility and changing market structures, the Machi Brothers case highlights the dangers of aggressive leveraged trading, even by high-profile on-chain investors.

It remains to be seen whether machibigbrother will be liquidated or whether it will survive. Meanwhile, the market is watching intently as both accounts aim to navigate one of the most significant challenges in recent months.