Gate News message: a well-known trader, Machi Big Brother, recently closed out about 2,700 Ethereum (ETH) positions, realizing roughly $5.54 million to avoid triggering a forced liquidation. By reducing his position size, he created a buffer between market prices and the liquidation level, while still holding approximately 5,000 ETH long positions with a total value exceeding $10 million. Reports say these positions were opened with as much as 25x leverage, making them extremely sensitive to price swings; at present, Ethereum’s trading price is nearing the updated liquidation threshold of $2,031.
This move highlights the importance of real-time risk management. Machi Big Brother limited potential losses by partially closing out, buying time for a market rebound, while still keeping positions to capture opportunities if prices rise again. This strategy is common among leveraged traders, especially in highly volatile markets—high leverage means very little room for error, and any price drop could set off a chain of liquidations.
On a psychological level, it reflects the pressure of leveraged trading. Machi Big Brother is known for bold moves, but recent actions show that even experienced traders will prioritize position survival. When prices approach the liquidation line, decisions must be made quickly and decisively—this kind of psychological pressure is widespread across the entire crypto market.
From a market perspective, the position adjustment may affect Ethereum’s price volatility in the short term. If the remaining long positions stay stable, market confidence may strengthen, attracting more buyers; conversely, if large-scale liquidations occur, it could trigger a cascade of sell-offs, intensifying market swings. Both institutional and retail traders closely watch similar events to gauge market sentiment and potential risks.