Earlier today, on August 13, crypto trader Huang Licheng, also known as “Machi Big Brother,” secured $33.8 million in profits after closing all his leveraged long positions in $ETH, $HYPE, and $PUMP.
The recovery against this resistance was largely due to this breakout in Ethereum price beyond $4,600, its highest of the year.
With the buzzwords going around, it has gone viral in the crypto space. Catchphrases such as “Big Brother will never lose” and “Big Brother is back” have truly taken over the community of traders who are aware of the trade.
From Gigantic Setbacks to Strategic High-Leverage Gains
According to the on-chain analysis tool Lookonchain, Machi Big Brother increased his holdings in ETH, HYPE, and PUMP towards the end of July, while the price of PUMP crashed more than 50% within a fortnight.
Instead of throwing in the towel, he doubled down, opening a 25x leveraged long on ETH at $4,181 and a 5x leveraged long on HYPE at $42.3.
These aggressive bets initially left him with huge paper losses, although the market reversal made them huge profits.
Ethereum’s run not only erased his losses but propelled his record trading profit on Hyperliquid to more than $30 million before he topped the bonanza.
Ethereum’s Price Breakthrough Sparks Market-Wide Optimism
The rest of the crypto market was instrumental in the recovery of Machi, as Ethereum shot up to $4,620.76, with a 7.23% growth in the last 24 hours and 27.19% in the previous week.
The rally took Ethereum’s market capitalization to more than $557.8 billion, along with a whopping $59.4 billion in trading volume in a single day.
Experts consider ETH’s breakout above $4,600 to be both a noteworthy technical breakout and an indicator of the return of bullish sentiment.
The confidence rebound helped fuel leveraged speculators like Machi, whose aggressive bets caught the strong rally momentum.
Also Read: PEPE Investor Secures $406K in Floating Profits After Spending $3.95M WETH to Acquire 20,511 AAVE
A Lesson in High-Risk, High-Return Trading
Machi Big Brother’s revival has been hailed as a textbook example of how high-risk leveraged trading can bring about breathtaking gains while at the same time demonstrating the explosive volatility and danger in such activities.
His story, called a “revenge trade” in crypto market parlance, has reopened the debate regarding whether drastic leverage is a viable long-term trading strategy or a recipe for catastrophe.
Closing out his trades at the top of the rally, Machi avoided the harsh reversals that have caught other traders off guard, pocketing his $33.8 million profit and reclaiming his status after being knocked around recently.
Also Read: Whale Transitions From Short To Long On GMX Exchange, Securing $177K Profit In ETH
Other Traders Cashing In Amid Ethereum Rally
Machi is not alone in securing massive gains from Ethereum’s recent rally. UnoCrypto reported a couple of trader outcomes, and below are a few.
On March 21, a long-term Ethereum whale netted $65.68 million in profit after selling 34,125 ETH acquired at just $44 each, holding the investment for eight years.
On the other hand, the high-risk trader AguilaTrades faced turbulent episodes in July by first converting a $35 million extended short position in ETH into a $3 million profit and then watching the skies tumble into a $27 million unrealized loss.
There may be a stress-induced thermonuclear war uniquely born of financial and psychological pressure while trading prominent, leveraged positions in a volatile market, where fortunes are made or lost within just a few hours.