The NFT Liquidation Event
Published 6/28/2026, 8:24:50 AM
Jeffrey Huang, known as Machi Big Brother, has liquidated a significant portion of his Bored Ape Yacht Club (BAYC) collection at losses exceeding 90% to maintain aggressive, high-leverage long positions on the Hyperliquid decentralized exchange. His strategy involves a "Martingale" approach—doubling down on losing positions to lower his entry price—which necessitates constant capital infusions from his NFT portfolio to prevent total liquidation of his margin accounts.
The NFT Liquidation Event
Huang's transition from a premier NFT collector to a high-frequency DeFi trader has been marked by "fire sales" of blue-chip assets into a declining market. These sales are primarily driven by the need for immediate liquidity to meet margin calls on Hyperliquid.
| Metric | Data Point |
|---|---|
| Notable Sale | Bored Ape #6057 sold for 7.65 ETH (Purchased for 76.84 ETH) |
| Realized Loss (Single Asset) | ~90% in ETH terms |
| Monthly Volume | 34 Bored Apes sold for approximately 326 ETH (~$514,000) |
| Total Realized Loss (NFTs) | Nearly 400 ETH on specific documented sales |
Hyperliquid Trading Strategy and Performance
Huang's trading on Hyperliquid is characterized by extreme risk-taking. He has suffered over 335 liquidations, earning him the community moniker "King of Liquidations."
- Leverage Levels: He typically utilizes 15x to 25x leverage on assets like Ethereum (ETH) and HYPE. [Verified: https://web.search.result.1]
- Position Sizes: He has managed massive positions, including a reported $34M ETH long. [Source: https://web.search.result.2]
- Financial Drawdown: Despite reaching a peak profit of $44.5 million in September 2025, his account suffered a 97.6% drawdown by mid-2026, with total realized losses estimated between $71M and $78M. [Source: https://web.search.result.3]
- Market Impact: His frequent liquidations have ironically become a primary yield source for Hyperliquid's liquidity providers (HLP), as his losses subsidize the HLP vault. [Source: https://web.search.result.3]
Reasoning and Context
Huang’s decision to liquidate his NFT legacy for perpetual futures is rooted in a high-conviction belief in a market reversal. His stated motto, "I never lose. I win or I get liquidated," reflects a binary trading philosophy where he prefers total loss over exiting a losing position early.
By selling NFTs at a 90% loss, he converts "illiquid" floor-priced assets into USDC margin. For example, the sale of a single Ape for approximately $67,000 was used to provide the necessary margin to support a $1.6 million ETH long position.
Summary of Current Status
As of June 2026, Huang's Hyperliquid equity has fluctuated between $100,000 and $141,000, a fraction of his former nine-figure net worth. While the 90% loss on specific Apes like #6057 is verified, the full scope of his entire NFT portfolio's performance remains partially unverified due to the complexity of his multi-wallet on-chain activity. Additionally, while his liquidations significantly boosted HLP yields, the specific peak figure of 118% APR remains an unconfirmed report. [Note: not independently confirmed]