TL;DR
- Bitcoin dropped to $80,000, triggering over $30 million in forced liquidations across major accounts.
- Two Aave whales and “Machi Big Brother” suffered multi-million dollar losses due to their leveraged positions.
- Massive Bitcoin ETF outflows and strong US jobs data were the catalysts for the market crash.
Large investors have yet to recover from the rally that took Bitcoin to $80,000. Various on-chain monitoring firms report that at least three major accounts, including two Aave whales and well-known trader Jeffrey “Machi Big Brother” Huang, were hit with over $30 million in forced liquidations within hours.
The event highlights the extreme volatility and risk of leverage in decentralized finance (DeFi). Blockchain security firm PeckShield identified that one of the most significant liquidations, valued at $11.41 million, affected Aave wallet 0x94de…940a.
The position collapsed when Bitcoin’s price pushed its loan-to-value (LTV) ratio above the protocol’s threshold. Data reveals that this user maintained a large leveraged position with $10.55 million in Wrapped Bitcoin (WBTC), Wrapped Ether (WETH), and other Aave-related tokens as collateral. With this latest event, the total cumulative loss for this wallet has reached $20 million.
A second account, 0x3436…2094, also on Aave, experienced a $1.92 million liquidation sequence during the same downturn period, using WBTC and wrapped staked Ether as collateral to borrow USDT and USDC. For this account, the cumulative loss is approaching $5 million.
The Collapse of a Giant and the Causes of the Sell-off
Another prominent victim was Taiwanese-American actor and crypto trader Jeffrey Huang, also known as Machi Big Brother. According to Lookonchain, his primary account on the Hyperliquid exchange was “fully liquidated,” registering a net loss (negative PnL) exceeding $20.23 million.
Machi Big Brother had executed several leveraged long bets on Ether (ETH) before the broader market correction occurred. Ten days before the crash, he had deposited $6.96 million in USDC to Hyperliquid, almost all of which has now been lost. His most recent position was a 25x cross-margin Ether long.
Behind this liquidation episode, the crypto market experienced strong selling pressure due to two main factors. First, net outflows from US spot Bitcoin ETFs totaled $903.11 million at Thursday’s close, led by BlackRock’s IBIT ($355.5 million) and Grayscale’s GBTC ($199.35 million). Cumulative November outflows now reach $3.79 billion.
Second, the release of strong US jobs data (119,000 new jobs versus the 50,000 expected) prompted traders to re-evaluate their positions, anticipating a tighter monetary policy than previously forecast. This combined environment triggered the massive sell-off that led to the crypto whales liquidation and the major DeFi accounts being wiped out.
