"Current Position: 25x long on 2,200 ETH (approximately $6.67 million); Liquidation Price: $2,991.43; Cumulative P&L: $24.18 million loss." This is the latest status of Huang Licheng’s (Machi Big Brother) address as monitored by Lookonchain on January 20, 2026. Due to the market downturn, his long position was liquidated five more times that day, causing his total losses to surge dramatically.
Position Evolution: From Partial Profit-Taking to Consecutive Liquidations
Just a few days earlier, on-chain data showed this well-known crypto asset holder was managing his positions cautiously. According to monitoring on January 18, Huang Licheng partially closed out 2,450 ETH long positions in batches, realizing a profit of $301,000. After these trades, his account still held 8,800 ETH in open positions, with an average entry price of $3,145. At that time, this position had an unrealized profit of $1.597 million, with a total position value of $29.27 million.
However, the market moved far beyond expectations. On January 19, conditions worsened and his 25x leveraged ETH long position was partially liquidated, pushing his account into a loss, with floating losses exceeding $1 million and total book losses reaching $23.6 million.
By January 20, his floating loss on ETH longs had expanded to over $660,000, with a liquidation price of $3,019.84. Ultimately, under persistent market pressure, five consecutive liquidations occurred that day, pushing his cumulative losses further to $24.18 million.
Market Context: Broad Pressure Across Crypto Markets
Huang Licheng’s liquidation was not an isolated event, but part of a broader global risk asset correction. On the morning of January 21, 2026, the cryptocurrency market saw a sharp selloff. Ethereum’s price dropped as much as 6.94% in 24 hours, while Bitcoin fell 4.66%. BNB and Solana declined by 5.35% and 4.90%, respectively. This market-wide downturn led to a staggering $1.064 billion in crypto contract liquidations across the network in the past 24 hours.
Global markets were equally pessimistic. All three major US stock indices fell: the Dow dropped 1.76%, the S&P 500 lost 2.06%, and the Nasdaq declined 2.39%. Major European indices also retreated, with the UK FTSE 100 down 0.67%, France’s CAC40 off 0.61%, and Germany’s DAX falling over 1%. In this environment of systemic risk, leveraged positions faced intense pressure, explaining why so many traders were liquidated during this period.
Safe Haven Shift: Capital Flows Into Traditional Assets
In stark contrast to crypto’s decline, traditional safe haven assets performed strongly during the same period. Heightened geopolitical tensions fueled risk aversion, sending gold futures to new all-time highs on January 20. This trend was also evident in the digital asset space.
On-chain gold tokens became a market highlight. According to Gate market data, as of January 21, PAX Gold (PAXG) was priced at $4,864.54, up 3.86% in 24 hours; Tether Gold (XAUt) traded at $4,836.33, up 3.55%. The rally in these digital gold tokens directly benefited from spot gold breaking through the $4,700 historical high. Data shows that one whale purchased 8,337 XAUt tokens worth $38.4 million in the past 20 days, indicating that institutional investors are continuing to increase their exposure to these safe haven assets.
The negative correlation between gold assets and risk assets has become especially pronounced in the current market, explaining why some capital is shifting from crypto to traditional safe havens.
Leverage Strategies: High Rewards Come With High Risks
Huang Licheng’s trading approach has long been known for high leverage within the crypto community. Looking back at data from August 2025, he once ramped up his long positions to 21,900 ETH (25x leverage) and 50 BTC (40x leverage), valued at approximately $100 million and $5.9 million, respectively.
High-leverage trading is a double-edged sword. When the market moves in the expected direction, gains can be amplified significantly. But adverse market swings can quickly magnify losses and trigger forced liquidations.
Reviewing Huang Licheng’s trading history, this isn’t his first time adjusting positions due to market volatility. In October 2025, he liquidated 1.64 million PNKSTR tokens, incurring a $214,000 loss (-65%), then shifted funds to increase his ETH long exposure. This time, he again chose high leverage on ETH longs, but the market moved against him. As the ETH price kept falling, his positions were repeatedly partially liquidated, causing losses to snowball.
Table: Recent ETH Position Changes and Market Performance for Huang Licheng
| Date | ETH Position | Leverage | Market Price Range | Position Status |
|---|---|---|---|---|
| Oct 2025 | 1,189 ETH | Not Specified | Not Specified | Added long exposure |
| Jan 18, 2026 | 8,800 ETH | Not Specified | Avg. cost ~$3,145 | Partial profit-taking |
| Jan 20, 2026 | 2,200 ETH | 25x | Liquidation at $2,991.43 | 5 liquidations, $24.18M loss |
Data Analysis: Price Trends on Gate Platform
On the Gate platform, precious metals and cryptocurrencies have shown sharply divergent trends. As of January 21, 2026, XAUT was priced at $4,836.33, up 3.55% in 24 hours; PAXG was at $4,864.54, up 3.86%.
Meanwhile, the broader crypto market remains under pressure. Gate analysts forecast that gold prices in 2026 may range between $3,900 and $5,800, with an average expected price of $5,100. For Ethereum, given its recent performance and market conditions, traders should closely monitor key price levels. Huang Licheng’s liquidation price was $2,991.43, while his average entry was around $3,145—both may become short-term technical focal points.
With heightened market volatility, setting appropriate stop-losses and strictly controlling position sizes is more important than ever. On Gate, traders can flexibly adjust leverage based on their risk tolerance and market outlook, helping to avoid forced liquidations during sharp market swings.
Risk Insights: Survival Rules for Leveraged Trading
Huang Licheng’s experience serves as a critical risk warning for all leveraged traders. During periods of extreme market volatility, liquidation risk for high-leverage positions increases sharply.
Professional traders typically recommend limiting the risk exposure of any single trade to no more than 1-2% of total account funds. This way, even a string of losses leaves sufficient capital to continue trading. On Gate, traders can use isolated margin mode to segregate risk across different positions, preventing losses in one position from impacting the entire account.
Diversification is also an effective way to reduce risk. When market uncertainty rises, consider not only allocating across different cryptocurrencies, but also looking at tokenized traditional safe haven assets like XAUt and PAXG, which often show low or even negative correlation with the crypto market.
Monitoring on-chain data can provide valuable insights. Key indicators such as large position addresses, exchange fund flows, and changes in leverage ratios can help traders better understand market sentiment and potential risk points.
As market volatility persists, Huang Licheng’s holdings have dropped from a peak of 8,800 ETH to just 2,200 ETH. His 400 ETH take-profit order set in the $3,350–$3,400 range now seems out of reach at current prices. The crypto world will not soon forget scenes like this: as Ethereum briefly touched $2,991.43, the on-chain liquidation alarm sounded once again. This is more than just a change in account numbers—it’s a risk warning to every participant in the market.
