A weekly loss of $4.3 million, Brother Ma Ji immediately re-entered with a heavy position of 600 ETH after liquidation.

On-chain trader Brother Magi (Huang Licheng)'s long position was completely liquidated as the market continued to decline, resulting in a loss of $4.3 million over the past week. Surprisingly, shortly after the liquidation, he immediately reopened a 600 ETH long position with 22.84x leverage. This move demonstrates his strong confidence in the market’s future but also exposes the risks associated with high-leverage trading.

Liquidation and Counterattack: From Margin Call to Re-Positioning

According to on-chain data, Brother Magi’s long position was liquidated within the past week. Before liquidation, he held multiple high-leverage positions, with ETH longs reaching up to 25x leverage. As ETH’s price retreated from its highs, these positions could no longer be maintained and were forcibly closed.

The account’s state after liquidation was quite dangerous: available margin had dropped to zero, meaning there was no buffer left. Yet, this did not stop him from continuing to trade. According to the latest data, he immediately opened a new ETH long position after liquidation, with details as follows:

Impact of the Loss Scale

A loss of $4.3 million in a week is a heavy blow to any trader. This loss accounts for 18.8% of his total account loss (which has risen to $22.83 million). More notably, this occurred during a period when he was still profitable—according to data from January 18, he had a total profit of $3.5 million over the past month, with a win rate of 84.21% in the past week.

From profit to massive loss in just one week. This reflects the extreme risks posed by market reversals in high-leverage trading.

Risks Facing the New Position

Even more concerning is that Brother Magi’s new position is already in a highly dangerous zone. Currently, ETH is around $2934, while his liquidation price is $2865.54. This means that if ETH drops another $69 (about 2.4%), this new position will face liquidation.

Considering ETH has already fallen 11.74% in the past 7 days, the risk for this new position is quite high. Coupled with 22.84x leverage, even small fluctuations could cause significant losses.

Why Continue Opening Long Positions

Brother Magi’s immediate re-accumulation after liquidation warrants reflection. It may reflect several factors:

• Strong conviction about the market: He might believe the current price is the bottom and will rebound
• Financial pressure: Needs to quickly recover losses through high leverage
• Trading habits: As an experienced trader, he may be overly confident in his judgment
• Gambler’s mentality: Increasing bets after losses in an attempt to turn things around

Industry opinion articles mention that 92% of contract market participants incur losses, and traders like Brother Magi who frequently operate with high leverage exemplify high-risk behavior. Even wealthy insiders are not immune to market penalties.

Summary

Brother Magi’s experience once again validates the risks of high-leverage trading. A $4.3 million loss in a week, zero available margin after liquidation, and immediately re-entering a position—all these actions demonstrate the persistence of on-chain traders but also reveal the extreme risks they face.

The newly opened 600 ETH long position is now in a precarious state, with only 2.4% downside remaining before liquidation. This serves as a clear warning to all those involved in contract trading: even experienced and well-funded traders cannot guarantee continuous profits in high-leverage trading. Risk management and stop-loss discipline are always more important than gambler-style attempts at turnaround.