Huang Licheng invests another 300,000 USDC! Brother Maji stubbornly holds onto his ETH long positions, refusing to admit defeat

December 12, American-born Taiwanese singer and L.A. Boyz member “Brother Ma Jie” Huang Licheng deposited another 299,842 USDC into Hyperliquid and increased his ETH long position with 25x leverage. Currently, his position stands at 6,900 ETH, with an entry price of $3,240.93, and a liquidation price of $3,130.95, just about $110 away from triggering liquidation.

Two consecutive days of adding: Brother Ma Jie’s risky bet

(Source: Hyperliquid)

Huang Licheng’s trading strategy demonstrates a typical “never give up” mentality. On December 11, he deposited $254,727 USDC into Hyperliquid to continue going long on Ethereum. At that time, his ETH holdings had increased to 11,100 tokens, worth $36.36 million (about NT$113 million). This aggressive position-building is extremely risky in the crypto market, especially with 25x leverage.

However, Ethereum continued to decline. According to Lookonchain’s post, even after Huang Licheng partially closed 2,100 ETH, worth about $6.72 million (around NT$209 million), he still could not avoid liquidation. This liquidation revealed that Huang underestimated the market’s downward momentum or believed ETH would rebound and chose to hold on stubbornly. On December 12, he deposited nearly USDC 300,000 again to increase his position, showing he did not learn from the previous day’s liquidation but instead continued to gamble.

Currently, Huang Licheng holds 6,900 ETH (consistent with the latest data on December 12), valued at about $22.4 million. The new forced liquidation price is $3,130.95. With ETH trading around $3,240, he is only about $110 above the liquidation point—just a 3.4% decline from current levels would trigger forced liquidation. This extreme risk management approach is nearly suicidal in the eyes of professional traders.

Brother Ma Jie’s position risk analysis

Very low safety margin: Liquidation at $3,130.95 is only 3.4% below current price, and ETH’s intraday volatility can easily exceed this range.

25x ultra-high leverage: Means that a 1% drop in ETH results in a 25% loss on the position, creating enormous amplification.

Continuously adding to average down: Increasing position size while in a loss, which can lead to even bigger losses if the market trend is wrong.

Public identity pressure: As a well-known figure, his trading records are tracked by on-chain analysis teams in real-time, and any losses are amplified in reports.

The trading psychology trap behind a NT$100 million weekly loss

According to Hyperbot data, as of 4:10 pm on December 12, Brother Ma Jie’s losses for the past week have reached nearly US$2.92 million (about NT$100 million). This scale of loss would be devastating for an average investor, but for someone with substantial wealth like Huang Licheng, it might be just a drop in the bucket. However, the issue is not the loss amount itself but the psychological trap behind such trading behavior.

“Cost averaging” is a common instinct among traders when facing losses. When in a losing position, adding more can lower the average cost, theoretically requiring only a small rebound to break even. But this strategy is extremely dangerous in trend markets, especially with high leverage. If the market trend does not reverse, each additional position increases losses, ultimately leading to a bigger disaster.

Huang Licheng’s continuous adding shows he believes ETH will rebound, but the market does not always move according to personal expectations. ETH has already fallen over 10% from its early December high, and technical indicators suggest the downtrend is not over. With this context, a 25x leveraged long position faces very high liquidation risk. If ETH continues to drop toward $3,100, Huang’s 6,900 ETH long will be forcibly closed, further enlarging losses.

More importantly, Huang Licheng’s example as a famous investor in the crypto space exerts a demonstration effect. Many retail investors see him as a “big shot” and follow his trades. However, his consecutive adding and liquidation episodes serve as a cautionary tale: even seasoned investors can suffer huge losses when using high leverage and going against the trend. Blindly copying trades can lead to greater disasters.

Ethereum technical outlook and risk management lessons

Ethereum’s current technical situation does not support aggressive long strategies. The price has broken below several key moving averages, and momentum indicators show continued selling pressure. If ETH drops below the psychological level of $3,100, the next support is around $3,000, which could trigger Huang Licheng’s liquidation and potentially cause a chain reaction. Other high-leverage longs in the market could also be liquidated simultaneously, further accelerating the decline.

For ordinary investors, Huang Licheng’s case offers several important lessons. First, high leverage is extremely dangerous; 25x leverage means a 4% adverse move can wipe out the principal. Second, trading against the trend with adding positions requires utmost caution and should only be considered when clear reversal signals appear. Third, setting stop-loss is vital for survival; even “big shots” should avoid holding a gambler’s mentality of “no stop-loss.”

Fourth, public traders face additional pressure. Huang’s every trade is tracked and reported immediately by on-chain analysis teams, amplifying any losses. This public scrutiny can influence decision-making, such as refusing to admit losses for face reasons, ultimately causing bigger damage. Although ordinary investors lack this public pressure, they should also avoid boastful trading in social groups or circles to prevent similar psychological burdens from impairing rational judgment.

When the crypto market warmed up on December 2, Huang immediately re-entered the market to bet on ETH, showing his long-term optimism. However, market timing is equally important; even with the right direction, poor entry timing or poor position management can lead to losses. Current adverse factors for ETH include: hawkish Federal Reserve stance, year-end institutional rebalancing, and less-than-expected Ethereum ecosystem developments. These factors make short-term rebounds more difficult.