Machi Liquidated Again as ETH Drops After Israel-Iran Strike

Crypto markets turned shaky on February 28 after fresh geopolitical tension hit headlines. Ethereum suddenly dropped below key levels. The move once again wiped out high-leverage trader Machi Big Brother. On-chain data shared by Lookonchain shows the well-known whale lost most of a fresh deposit within days. The liquidation came shortly after reports of U.S. and Israeli military actions targeting Iran’s nuclear infrastructure. As risk sentiment flipped fast. The leveraged positions across the market faced heavy pressure.

Trump Confirms U.S. Strikes on Iran

The sell-off followed strong remarks from President Donald Trump. He confirmed military strikes on Iran. In his statement, Trump said the objective was the destruction of Iran’s nuclear enrichment capacity. He also warned Tehran to “make peace” or face far greater attacks.

pic.twitter.com/BZuJDudLej

— Donald J. Trump (@realDonaldTrump) February 28, 2026

According to the announcement, U.S. forces targeted three major nuclear sites: Fordow, Natanz and Isfahan. Trump described Iran as the “world’s number one state sponsor of terror.” It signaled that operations could continue for multiple days. The tough rhetoric quickly raised fears of wider conflict across the Middle East. Markets reacted almost immediately. Risk assets, including crypto, saw quick selling as traders moved to protect capital.

Ethereum Drop as Risk Sentiment Weakens

Ethereum took a sharp hit during the news cycle. ETH dropped from around $1,900 to below $1,870 within hours. That drop may look small on paper. But in leveraged markets, it was enough to trigger cascading liquidations.

At the same time, overall crypto sentiment turned defensive. Traders reduced exposure while volatility spiked. Events like geopolitical strikes often create sudden uncertainty. As a result, leveraged longs usually suffer the most. Financial research has long shown that leverage magnifies losses during shock events. This episode followed that exact script.

Machi Big Brother Suffers Another Wipeout

The biggest casualty was Machi Big Brother, the pseudonym of Taiwanese-American entrepreneur Jeffrey Huang. He is known for aggressive high-leverage trades, especially on Ethereum. According to Lookonchain, Machi deposited about $245,000 in USDC just four days earlier to rebuild his position. But he again opened large 25x leveraged ETH longs. When ETH dropped, the position quickly collapsed.

After Israel's strike on Iran, $ETH dropped sharply — and Machi(@machibigbrother) got liquidated again!

His account is now down to only $13,580.

He put in $245K just 4 days ago — and it’s already gone again.https://t.co/lwXUSKAqoa pic.twitter.com/5lA2hfbdKm

— Lookonchain (@lookonchain) February 28, 2026

His account reportedly fell to just $13,580. Data also shows his cumulative realized losses have approached roughly $29 million over time. In addition, earlier metrics showed margin usage above 160% and deeply negative return on equity. Despite repeated liquidations, Machi has continued to take bold directional bets. That pattern has made him one of crypto’s most watched high-risk traders.

High Leverage Faces a Harsh Reality

This latest wipeout again highlights the danger of extreme leverage during uncertain times. Crypto markets already move fast. When geopolitical shocks enter the picture. The volatility can spike without warning. 

For retail traders, the lesson is simple but important. Large leverage can amplify gains. But it can destroy accounts just as quickly. As tensions between the US, Israel and Iran continue to develop. The markets may remain highly sensitive to headlines. For now, traders are watching the charts and the geopolitical situation very closely.