Machi (singer Huang Licheng) was recorded opening a Longing position on XPL with 10x leverage and holding other Longing positions, including ETH 15x, HYPE 10x, and PUMP 5x; currently facing a pending loss of around $20 million.
This information is based on on-chain data aggregated from Onchain Lens. Highly leveraged positions increase the investor's risk of liquidation and loss/recovery volatility.
- Machi opens Longing XPL position with 10x leverage; holds additional ETH 15x, HYPE 10x, PUMP 5x.
- Currently recording a pending loss of about $20 million.
- High leverage increases the risk of liquidation and large fluctuations in profits/losses.
Position details
Machi holds a Longing XPL position with 10x leverage; also holds Longing ETH (15x), HYPE (10x), and PUMP (5x), according to on-chain data.
Leverage figures show that position size relative to Capital invested is large, so small price movements can create large swings in net asset value and loss/recovery.
Suspended hole state
There is currently a looming loss of around $20 million on total recorded positions.
Floating loss reflects a decrease from the entry price but not yet executed; if the price continues to be unfavorable, the loss may increase and lead to partial or full liquidation of the position if the margin is insufficient.
Risks associated with leverage
High leverage increases potential returns but also magnifies losses and liquidation risk.
Investors using leverage need to manage Capital, place stop-loss orders and monitor market fluctuations closely to reduce the risk of losing Capital exceeding the margin.
Information sources
Position data is aggregated from the on-chain analytics platform Onchain Lens, based on public on-chain transactions and positions.
Onchain Lens gathers on-chain data to track wallet addresses and positions; depending on the time of query, the number of open holes can change with market fluctuations.
An on-chain record shows highly leveraged Longing positions and the consecutive pending losses on the associated address.
Onchain Lens, an on-chain analytics tool, September 26
What does Longing position mean?
A Longing position is a bet that an asset's price will rise; an investor buys or opens a buy order expecting to make a profit when the price goes up.
What is dangerous about 10x leverage?
10x leverage increases profit and loss margin by 10 times; small price movements can cause large losses or liquidation if margin is insufficient.
Is the floating hole an actual hole?
Floating loss is an unrealized loss that appears only on paper; it becomes an actual loss when the position is closed or a loss is realized.
