The massive risks of high-leverage trading have once again played out in the cryptocurrency market. According to data from market monitoring platform HyperInsight, well-known crypto investor "Maji Big Brother" Huang Licheng recently saw his 25x leveraged ETH long position completely liquidated, resulting in a staggering $1.75 million loss.
This is just the latest in a series of leveraged blow-ups for him in recent months, with cumulative losses possibly exceeding $25 million.
01 Event Recap
The latest liquidation for "Maji Big Brother" Huang Licheng occurred amid a sustained market downturn. According to BlockBeats, as the market continued to fall, his 25x ETH long was fully liquidated, resulting in significant losses.
Despite the setback, Huang Licheng didn’t exit the market. Instead, he opened another long position. Reports indicate he re-entered with 600 ETH, worth about $1.75 million. This "never give up" trading style has drawn widespread attention in the crypto community.
Market monitoring data shows that this latest liquidation pushed his losses over the past month to $4.3 million, bringing his total account loss to $22.83 million.
02 History Repeats Itself
This is far from the first time Maji Big Brother has suffered a major defeat with leveraged trading. Looking back at market events in November 2025, he endured heavy losses from liquidations on both ETH and HYPE leveraged long positions.
That episode was equally dramatic: his Ethereum position was leveraged 25x, while his HYPE position was at 10x. The liquidation wiped out his account equity, which plunged from $1.9 million to just $149,000 in a single week—a 92% drop.
With 25x leverage, the Ethereum price only needs to fall 4% to trigger liquidation. In the crypto market, daily swings of 5% in major coins are common. While such high-risk strategies can amplify gains in a bull market, they are easily whipsawed in choppy conditions.
03 The Cost of High-Leverage Trading
Maji Big Brother’s experience highlights the destructive potential of high-leverage trading. With 25x leverage, a mere 4% move against your position can wipe out your entire principal—leaving no margin for error.
In the crypto market, daily volatility of 5% is standard, and for small-cap tokens, 20% swings in a single day are not unusual. Using high leverage in this environment is like "walking a tightrope without a safety net."
What’s even more concerning is his use of "averaging down" to try to lower his cost basis during drawdowns. In high-leverage environments, this strategy is extremely dangerous, as every additional position increases total risk exposure.
04 Market Backdrop and Price Volatility
The crypto market has recently shown clear signs of divergence. On January 24, for example, some projects like Kaia (KAIA) surged 33.12% in a single day, while Hyperliquid (HYPE), a leading perpetual DEX platform token, saw a more modest 4.90% gain amid market adjustments.
Ethereum’s price has been especially volatile. On January 14, ETH jumped 5% to $3,380, breaking above the $3,300 mark for the first time in 2026. This rally triggered a wave of short liquidations in the derivatives market, with over $250 million in forced closures from traders shorting Ethereum.
Such sharp price swings make high-leverage trading extremely unpredictable. Bitcoin recently climbed as high as $97,800, only to drop below $89,000 on January 23 due to macroeconomic factors. In this kind of environment, even seasoned traders struggle to accurately predict short-term moves.
05 How to Avoid Becoming the Next "Maji Big Brother"
In Gate Research Institute’s recent report, "2025 Crypto Market Review and 2026 Outlook," experts noted that Bitcoin holdings are increasingly concentrated among large institutions and professional custodians—a trend that could help stabilize the broader market.
For everyday investors, Maji Big Brother’s experience offers valuable lessons. Never use more leverage than you can afford to lose. Never blindly average down when facing losses. Never put all your capital on a single bet.
The crypto market is full of opportunities—but only if you survive long enough to seize them.
According to a podcast report, this trader’s $60 million short position was completely wiped out, with unrealized profits plunging from $24 million to just $4 million. This once again proves that in the unpredictable crypto market, whether you’re long or short, high leverage is a Damocles’ sword hanging over your head.
Investors should always put risk management first: set leverage ratios that fit your risk tolerance, and strictly enforce stop-loss strategies. Only then can you survive—and thrive—in this market of both opportunity and challenge.
