Machi Big Brother Sells NFTs Amidst Liquidation Risk

The prominent investor offloaded three Mutant Ape Yacht Club NFTs as a leveraged position faces potential liquidation.

Updated on Oct. 24, 2026 in Investing

Machi Big Brother Sells NFTs Amidst Liquidation Risk

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Machi Big Brother has sold three Mutant Ape Yacht Club NFTs for 1 ETH each following a period of holding. The sales coincide with significant pressure on a leveraged long position held on the Hyperliquid platform.

Why it matters

The recent activity highlights the liquidity challenges facing high-leverage crypto positions when underlying asset values decline. Investors are closely monitoring the account as it nears a critical liquidation threshold.

The investor maintains a 315 ETH long position using 25x leverage, representing a notional value of approximately $743,000. Ether traded at $2,359 as of October 24, with the position facing liquidation if prices drop to $2,336.93.

The players

Machi Big Brother

This entity is a well-known investor and high-volume participant within the cryptocurrency and non-fungible token markets.

Mutant Ape Yacht Club

This is a popular collection of non-fungible tokens built on the Ethereum blockchain.

Hyperliquid

This is a decentralized exchange platform that facilitates leveraged trading for various digital assets.

The details

Machi Big Brother executed the NFT sales across late October 22 and early October 23, marking a significant loss compared to original purchase prices of 6.13 ETH and 7.5 ETH for two of the assets. The account currently holds an open leveraged position that is sensitive to minor fluctuations in the price of Ether.

Timeline

  1. Two NFTs were acquired in 2023.

  2. The first NFT sale occurred at 8:09 p.m. ET on October 22, 2026.

  3. The second NFT sale occurred at 8:58 p.m. ET on October 22, 2026.

  4. The third NFT sale occurred shortly after midnight ET on October 23, 2026.

  5. The account snapshot was taken at 5:35 a.m. ET on October 24, 2026.

Market Dynamics

This activity reflects the broader challenges associated with the historical volatility of 25x leveraged crypto positions. It highlights the systemic pressure investors face when maintaining large-scale long positions during periods of negative price action in the crypto market.

Retail investors should note how quickly high-leverage positions can approach liquidation thresholds when market conditions shift. Monitoring the margin requirements and liquidation prices is essential for those utilizing leveraged instruments to manage their crypto holdings.

The takeaway

Maintaining positions with high leverage requires constant monitoring of account health and collateral levels. Investors should remain cautious about the liquidity risks associated with offloading non-fungible assets during market downturns.

Further reading

For more on the risks of digital asset markets, visit the Investing section.

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Is now a good time for individual investors to use high leverage in cryptocurrency trading?