From unrealized profit of 1.4 million to unrealized loss of 287,000, Brother Ma Ji's high leverage nightmare

On-Chain Trader “Brother Maji” Huang Licheng’s ETH long position faced a setback. According to the latest news, his 25x leveraged long position of 10,800 ETH is now floating at a loss of $287,000, with a position value of $33.62 million. Even more lamentable is that compared to ETH’s peak on January 7, his account’s unrealized profit once exceeded $1.4 million, but now has retraced over $2 million. In just four days, from massive unrealized gains to deep floating losses, the brutality of high leverage trading has been fully exposed.

Specific Data on the Position Dilemma

Maji’s current ETH long position details are as follows:

• Position size: 10,800 ETH
• Leverage: 25x
• Position value: $33.62 million
• Average entry price: $3,138.43
• Current ETH price: $3,109.18
• Liquidation price: $3,000.16

This means his entry price is only $29.25 higher than the current price, with a buffer of $109.02 before liquidation. Using the logic of 25x leverage, ETH would only need to drop about 3.5% to trigger liquidation.

The 4-Day Turn from Unrealized Profit to Loss

Based on position tracking from relevant sources, Maji’s account experienced the following changes:

It appears that the unrealized loss of $287,000 on Jan 11 is somewhat alleviated compared to the $460,000 on Jan 10, possibly reflecting continued position adjustments or a short-term market rebound. But from the peak unrealized profit of $1.4 million to the current loss of $287,000, the total retracement exceeds $2 million.

The Risks of High-Leverage Trading

Maji’s predicament essentially reflects the dual nature of high-leverage trading:

Amplified returns come with amplified risks

25x leverage means extremely efficient capital use, but also that price fluctuations are magnified 25 times. ETH dropping from $3,138 to $3,109 seems small (0.9%), but under 25x leverage, it results in a 22.5% floating loss on the account.

Liquidation risk always looms overhead

The liquidation price of $3,000.16 is $109 below the current price, seemingly with some buffer. However, in highly volatile markets, this margin can be breached within hours. The relevant information indicates that “$3,000.16 is the clearest current benchmark,” showing market participants are closely watching this critical level.

Liquidity risk from position size

A position of $33.62 million may face liquidity issues on certain tokens or trading pairs, leading to larger slippage during liquidation.

Market Insights

While Maji’s experience appears to be an isolated case, it actually reflects several current market phenomena:

• High-leverage longs are undergoing systematic shakeouts
• The market repeatedly tests key support levels, creating panic
• Large on-chain whale holdings often foreshadow sharp market volatility

For ordinary traders, even top traders like Maji are getting caught in high leverage, which should serve as a warning against blindly following high-multiplier leverage strategies.

Summary

Brother Maji’s ETH long position went from an unrealized profit of $1.4 million to a floating loss of $287,000 in just four days, demonstrating a retracement of over $2 million. The high risk of 25x leverage is vividly illustrated here: gains can be amplified rapidly, but losses can also escalate just as quickly. The liquidation threshold of $3,000.16 still offers some buffer, but in the current volatile market, this line of defense may be more fragile than expected. For all traders, this is a clear reminder: high leverage trading is not about betting on market direction but about whether you can withstand extreme short-term fluctuations.