Written by: Clow

Last night, the crypto market witnessed another thrilling series of liquidations.

Famous investor Huang Licheng (known as "Brother Maji") had his long positions on the decentralized derivatives platform Hyperliquid liquidated up to 10 times in a short period. His account balance plummeted from $1.3 million to just $53,178—less than 5% of its original value.

This is the cruelest scene of high-leverage trading: over $1.25 million vanished in just a few hours.

Ironically, just a few days ago, he had injected $254,700 USDC into Hyperliquid, increasing his ETH long position to 11,100 ETH, with a total value exceeding $36 million. However, just days later, this newly injected capital, along with his previous reserves, was once again crushed in the high-leverage meat grinder.

If the story ended here, it would merely be another tragic ending for a high-leverage gambler.

This is not the first time he has performed such "miraculous operations." As early as October 10, 2024, he experienced an even more dramatic liquidation: a $79 million ETH long position was forcibly liquidated, causing his account to flip from a profit of $44.5 million to a net loss of $10 million, resulting in a total reversal of over $54.5 million.

But after each previous liquidation, he would immediately replenish his margin and continue the next round of high-stakes gambling: depositing $199,800 on December 12, $275,000 on November 5, and injecting another $254,700 just days ago…

More ironically, while the media widely reported his massive losses, Huang Licheng shared a photo of a swimming pool on Instagram with the caption: "California Love."

Last night's 10 consecutive liquidations brought his account balance back to rock bottom—only $53,178 left. But based on his past behavior, it is likely that it won't be long before he injects new funds and resumes his high-leverage gambling.

This raises a question that everyone wants to know the answer to: After repeatedly suffering tens of millions of dollars in losses, how can he mechanically replenish his margin time and again? Where does his money come from?

The Crazy Leverage Game

To understand Huang Licheng's source of funds, one must first recognize his trading style in the crypto market—extremely aggressive.

He is primarily active on the decentralized derivatives exchange Hyperliquid. This platform uses the HyperBFT high-performance consensus mechanism, enabling "millisecond-level matching speed." It sounds cool, but during severe market fluctuations, this speed also brings structural risks: high-leverage positions can be quickly and mechanically liquidated, leaving traders with "no chance to escape."

Huang Licheng happens to love such extreme operations. On-chain data shows that he frequently uses extreme leverage of 15x to 25x for ETH long positions. This level of leverage means that the market only needs to drop by 4-6% for his margin to be completely wiped out. Last night's 10 consecutive liquidations were a true reflection of this extreme leverage during severe market fluctuations.

Behind this crazy trading model is a shocking fact: no matter how much he loses, he can immediately replenish his margin and continue to gamble. From a $54.5 million reversal to nearly zero balance last night, after each massive loss, he can inject hundreds of thousands of dollars in a short time, even re-establishing positions worth tens of millions of dollars.

This behavior of immediately deploying new margin after suffering tens of millions in losses proves that these losses do not stem from the exhaustion of his overall net worth but are drawn from a specially allocated, highly liquid trading reserve.

So, how was this bottomless pool of funds established?

Where Does the Money Come From? A Three-Tier Capital Structure Revealed

First Tier: "Anchor Capital" from Traditional Technology

Huang Licheng's wealth foundation does not rely entirely on crypto assets. Before becoming a "gambling god" in the crypto space, he was a successful tech entrepreneur.

In 2015, Huang Licheng co-founded 17 Media (later M17 Entertainment/17LIVE). This platform quickly grew into Asia's leading live streaming entertainment platform, successfully listing in Singapore in 2023 after a failed IPO in New York in 2018.

The key financial event occurred in November 2020. Huang Licheng announced his resignation from the 17LIVE board, during which 17LIVE repurchased his shares in the company.

This share buyback coincided with the explosive bull market in crypto assets in 2021, providing Huang Licheng with "anchor capital." This cash flow from a mature enterprise laid a solid financial foundation for his subsequent high-risk investments in the crypto market, ensuring he could withstand significant short-term losses in later derivatives trading.

Second Tier: Controversial Past in Early Crypto Projects

In addition to his success in traditional technology, Huang Licheng was also deeply involved in early crypto projects, but this history is fraught with controversy.

The most representative is the Mithril (MITH) project. Huang Licheng was the founder of this decentralized social media platform. However, the project was later criticized as "only a concept, with a rough product and no real users." Despite the MITH token price plummeting over 99% after the market cooled, the project was ultimately delisted in 2022, but public reports clearly indicated that the token issuer made a significant profit in the early stages of the project.

This reflects the typical chaos of the 2017-2018 ICO era: regardless of the project's long-term utility or viability, founders could obtain substantial capital through the initial token generation event. Meanwhile, many retail investors suffered heavy losses after the project collapsed.

Huang Licheng also co-founded the decentralized lending protocol Cream Finance (CREAM). This protocol experienced multiple major security incidents in 2021, including a $34 million vulnerability attack and a $130 million flash loan attack.

It is important to emphasize that the ultimate failures of these early projects caused significant losses for investors; this history is provided only as background and does not constitute investment advice for any similar projects.

Third Tier: Liquidity Extraction from the NFT Empire

Building on traditional capital and early crypto projects, Huang Licheng uses NFT assets as a financial tool to continuously generate highly liquid crypto assets to replenish his trading reserves.

Huang Licheng is a well-known collector of top NFT series like Bored Ape Yacht Club (BAYC). As of June 2023, the NFTs held in his Ethereum wallet associated with machibigbrother.eth were valued at over $9.5 million.

However, his NFT strategy goes far beyond simple collection; it is a sophisticated financial strategy focused on liquidity generation:

• Massive Sell-off Events: In February 2023, he sold 1,010 NFTs within 48 hours, marking "one of the largest NFT sell-offs in history."
• ApeCoin Monetization: In August 2022, he sold 13 MAYC (worth about $350,000) within a week and transferred 1,496,600 ApeCoin to Binance.
• Blur Liquidity Mining: He was a major recipient of the Blur token airdrop and actively used the Blur Blend platform for NFT collateralized lending, previously being the largest lender on the platform, providing 58 loans totaling 1,180 ETH.

This high-frequency large-scale selling and NFT lending activity aims to maximize airdrop rewards and convert high-value digital assets into highly liquid ETH or stablecoins, continuously supplying ammunition for his derivatives trading reserves.

It is worth noting that during his Blur NFT liquidity mining activities, Huang Licheng also incurred costs. In attempting to mine tokens through Bored Ape NFTs, he realized a loss of about 2,400 ETH, valued at approximately $4.2 million. However, this $4.2 million loss was likely offset by the substantial gains he obtained from large Blur airdrops and other asset liquidations.

The Perpetual Capital Machine

Thus, Huang Licheng's ability to absorb tens of millions of dollars in liquidation losses and immediately reopen aggressive positions stems from a diversified and substantial capital structure:

• Traditional Tech Exit: Stable and large-scale fiat liquidity obtained through the sale of 17 LIVE shares in 2020.
• Early Crypto Native Capital: Although the projects themselves are controversial, early token issuance did accumulate crypto native capital.
• High-Speed NFT Liquidity Generation: Strategically converting high-value blue-chip NFT assets into ETH or stablecoins available for margin through large-scale sell-offs, airdrop rewards, and NFT collateralized lending.

Given the publicly confirmed total of major liquidations and profit-loss reversals (over $54.5 million), as well as his ability to inject hundreds of thousands of dollars in margin immediately after liquidations, it is conservatively estimated that his undivided liquid reserves should exceed $100 million to maintain such a high-risk trading style.

Even after experiencing 10 consecutive liquidations last night, with only $53,178 left in his account, based on his past behavior, it is likely that new funds will be injected soon. Huang Licheng's calm attitude, sharing a pool photo on Instagram with the caption "California Love" after his losses were widely reported, indicates that these liquidation events (despite their absolute magnitude) did not threaten his overall solvency.

More importantly, Huang Licheng's strategic vision extends beyond trading existing assets to initiating new capital generation mechanisms. By the end of 2024, he launched a new MACHI token project on the Blast blockchain, aiming to raise $5 million in liquidity through a "benchmark value event," quickly attracting large investors declaring capital of up to $125 million.

This wealth cycle model—from traditional exits to early crypto projects to NFT mining to derivatives trading to new token issuance (MACHI)—reveals a continuous, aggressive capital extraction and redeployment model. When one liquidity resource is locked or depleted by high-risk positions, he immediately initiates a new community-driven token project to refresh his funding reserves.

Conclusion

Due to the complete transparency of his on-chain trading activities, Huang Licheng serves as an important yet controversial market barometer. His trading scale is large enough to trigger significant price movements and community discussions.

However, for ordinary investors, Huang Licheng's case serves more as a warning than a role model.

First, the risks of high-leverage trading are extreme. A 25x leverage means that the market only needs to drop by 4% for your principal to be completely wiped out. Even someone as capital-rich as Huang Licheng has suffered tens of millions of dollars in losses in such trading.

Second, capital depth determines risk tolerance. Huang Licheng's ability to immediately replenish margin after massive losses is due to his diversified sources of capital and deep liquidity reserves. Ordinary investors clearly do not have such conditions; a single liquidation could be fatal.

Third, on-chain transparency is a double-edged sword. While transparency meets users' demands for data openness, the mechanical efficiency of the HyperBFT liquidation process eliminates the possibility of manual risk hedging during market shocks. The platform's efficiency itself has become a structural risk amplifier for high-leverage traders.

Huang Licheng's continued reliance on extreme leverage and the constant initiation of new token projects suggest that his financial activities will continue to generate significant market volatility. His capital model demonstrates how traditional tech wealth can efficiently combine with crypto-native wealth to support the most aggressive trading styles in the crypto market.

But for every investor involved, the more important question is:

Do you want to be the one creating liquidity or the one providing liquidity?

In this market, surviving is always more important than getting rich quickly.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。