After losing 25 million, adding more positions—how long can Huang Licheng's "lose more, add more" cycle last?

Crypto influencer Huang Licheng (@machibigbrother) has deposited another 225,000 USDC into Hyperliquid. This time, he not only increased his existing ETH (25x leverage) long position but also opened a new HYPE (10x leverage) long position, bringing his total current holdings to $20.8 million. However, there is a concerning issue behind this: just two days ago, he was completely liquidated due to a market downturn, with accumulated losses exceeding $25 million.

From liquidation to adding positions: a two-day cycle

Historical review: complete liquidation on January 26

According to the latest news, Huang Licheng experienced a full liquidation in the early hours of January 26. His ETH (25x leverage) long position was wiped out in one market move, resulting in a single loss of $696,000. But he immediately opened a new ETH long position, which also faced partial liquidation during subsequent declines.

By January 26, his total losses had surpassed $25 million. This figure is significant and demonstrates the trader’s aggressive approach.

Current operations: continuing to add positions

Just two days later, Huang Licheng chose to deposit more funds. This isn’t just a margin top-up; he continued to increase his existing positions while also opening new ones in different tokens.

Why is this operation noteworthy?

The mathematical dilemma of high leverage

25x leverage sounds aggressive, but the real risk is even scarier. Based on basic leverage calculations, a mere 4% drop in ETH price could trigger liquidation. This is not hypothetical but a straightforward mathematical reality. Recent market data shows ETH dipped to $2,784 on January 26, with volatility far exceeding 4%.

The new variable: HYPE

Huang Licheng also opened a new HYPE long position. HYPE is the native token of the Hyperliquid platform, launched for trading in July 2024, currently ranked 12th by market cap. As a relatively new token, its volatility is generally higher than ETH. Recent data shows HYPE surged 23.18% in the past 24 hours and 47.63% over 7 days.

This high-volatility token combined with 10x leverage further amplifies the risk.

The “losses leading to more trading” pattern

From the complete liquidation on January 26 to the continued adding of positions on January 28, Huang Licheng’s actions exhibit a clear pattern: after each liquidation, instead of reducing risk, he re-enters and fights again. This pattern is known in trading psychology as “revenge trading,” often a precursor to high-risk behavior.

Market context: increased volatility

All this occurs amid a period of intense market fluctuations. Recent data shows Bitcoin fell below the $87,000 support level on January 26, touching a low of $86,000; Ethereum experienced even larger drops, closing at a low of $2,784. Such volatility is deadly for positions with 25x leverage.

Summary

Huang Licheng’s latest moves reflect a typical high-leverage trader mentality: facing huge losses, he chooses to double down rather than cut losses. The $25 million in accumulated losses is already a warning sign, but his actions suggest that warning has not been heeded.

Based on the data, the current $20.8 million position still faces extremely high risk. Whether it’s the 25x ETH or the 10x HYPE, in the current volatile market, a small decline could trigger new liquidations. This is not investing; it’s gambling on high risk. For other traders, this case again proves that high leverage is not a tool for recovery but a magnifier of risk.