Holder Maji loses a million: when high leverage becomes dangerous

On January 19th, the cryptocurrency market experienced significant fluctuations, and one of the largest positions on the account of well-known trader Juan Lichen (“Maji Brother”) moved into the loss zone. This holder, who previously boasted a profit of over $1.3 million, now faces an unrealized loss of $1 million. According to HyperInsight monitoring, recorded by BlockBeats, the impressive debt growth has led to a critical reduction in margin safety.

How a $1 Million Profit Turned into a Loss

This holder demonstrates a classic volatile market situation: maximum profit over several weeks turned into serious losses within hours. Such scenarios are becoming more common as traders leverage high margin on promising assets. The risk of liquidation becomes an urgent issue even for experienced market participants.

Critical Position Analysis: Structure and Danger

Maji’s portfolio represents a complex system of high-risk positions:

First Position — ETH with Maximum Risk:
10,400 ETH with 25x leverage. At the current price of $2,100 per coin (changed from the original $3,102.12), the liquidation price remains critical. The unrealized loss on this position is $260,000, but volatility could quickly worsen the situation.

Second Position — HYPE with the Largest Loss:
333,000 HYPE tokens with 10x leverage. The token price increased from $20.39 to $31.55 (as of February 7), but the unrealized loss amounts to $480,000 — the largest in the portfolio.

Third Position — ZEC with Moderate Risk:
5,200 ZEC also with 10x leverage. The coin’s price changed from $125.70 to $240.35, but the loss still remains at $236,200, indicating that the entry price was significantly higher than the current average cost.

Fourth Position — BTC on the Edge of the Abyss:
A total of 11 BTC with an extreme 40x leverage — the most dangerous in the portfolio. With the current BTC price around $69,390, the unrealized loss is $29,300, but one bad move could lead to instant liquidation.

Why This Matters to Every Holder

Maji’s story is not just another large portfolio fall. It’s a lesson on how a combination of high leverage (especially 25x and 40x) with volatile markets can wipe out even impressive profits in a matter of hours. Mid-sized holders often copy the strategies of big players without realizing that one strong market move can erase a year’s worth of gains.

This case demonstrates the critical importance of diversifying leverage and constantly monitoring liquidation prices — two fundamental disciplines that separate surviving traders from those who are eliminated.