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Three large crypto traders lost more than $33 million in liquidations on Friday after Bitcoin’s drop to $80,000 pushed their leveraged positions past collateral thresholds on Aave and Hyperliquid.
The largest single liquidation, worth $11.41 million, hit a wallet holding wrapped Bitcoin and Ether on Aave, while trader Jeffrey Huang — known as ‘Machi Big Brother’ — saw his Hyperliquid account reduced to $15,538 after a $20.23 million loss.
Within minutes, two Aave whales and celebrity trader Jeffrey “Machi Big Brother” Huang were caught in a brutal liquidation cascade, highlighting how dangerously overstretched leverage had become as volatility surged and forced collateral sales swept through the ecosystem.
Aave liquidation chaos tore through the market early Friday as Bitcoin’s violent drop to $80,000 triggered a rapid chain of forced sell-offs, wiping out more than $33 million from three major crypto traders—including two large Aave whales and prominent trader Jeffrey “Machi Big Brother” Huang.
Aave liquidation events escalated within minutes as cascading liquidations spread across highly leveraged wallets. Analysts say the sudden price move exposed how overstretched many whales had become during Bitcoin’s recent rally.
“This was a textbook liquidity crunch—too much leverage, too fast, and not enough collateral buffer,” said Michael Silberberg, Head of Investor Relations at AltTab Capital, in an interview. “When volatility spikes, Aave liquidation pressures grow exponentially.”
According to blockchain security firm PeckShield, the largest hit came from a borrower identified as wallet 0x94de…940a, who suffered an $11.41 million Aave liquidation after Bitcoin’s dip pushed their loan-to-value ratio beyond safety limits.
The affected trader reportedly held:
When Bitcoin slipped to $80,000, liquidation bots immediately seized collateral—sending out 56.61 ETH twice, valued at more than $154,000 each.
The total value flushed out in this Aave liquidations brought the whale’s cumulative losses to $20M, based on Hypurrscan dashboard data shared by PeckShield.
“This liquidation wasn’t random,” noted Tom Wan, On-chain Analyst at 21Shares. “Large accounts were pushing their leverage to the edge. Bitcoin only needed a slight nudge to trigger a liquidation cascade.”
Another borrower, wallet 0x3436…2094, faced an Aave liquidation series totaling $1.92 million during the same market downturn.
The account had posted WBTC and wstETH as collateral while borrowing USDT and USDC. According to PeckShield, this wallet is now sitting on nearly $5 million in total liquidations.
Market watchers say this second Aave liquidation confirms a growing pattern: leveraged whales are being squeezed at a rate not seen since early 2024.
While the Aave liquidation drama rattled DeFi investors, the centralized derivatives world had its own casualty.
Crypto personality Jeffrey “Machi Big Brother” Huang was fully liquidated, according to Lookonchain, leaving his primary trading account with just $15,538—and a staggering $20.23M in realized losses.
Huang had aggressively longed Ether on Hyperliquid, even depositing 115,000 USDC six hours before his final wipeout.
Since the October 11 crash, he had transferred 6.96 million USDC onto the exchange—almost all of which is now gone.
Hyperliquid data shows his last position was a 25x cross-margin ETH long worth $274,400, entering around $2,737.
ETH’s drop below $3,000 sealed his fate.
Veteran derivatives trader Alex Krüger commented on the wipeout, saying:
“High leverage is a ticking time bomb. Machi’s wipeout is a reminder that even seasoned traders aren’t immune when volatility spikes.”
With Bitcoin still hovering near the liquidation trigger zone, analysts warn additional Aave liquidation events could follow if volatility persists.
“Once liquidation cascades start, they rarely stop immediately,” said Igor Igamberdiev, Head of Research at Wintermute. “Whales who survived this round may still be at risk if Bitcoin retests lower ranges.”
For now, the market remains on edge as the Aave liquidation wave exposes the fragility of leveraged strategies during sudden price corrections.
