Bitcoin continued to spread weakness across cryptocurrencies on 17th of February 2026. Risk appetite fractured as Open Interest drained from Bitcoin and Ethereum while price momentum stalled.
BTC’s OI fell from over $12B in late January to $7.6B as price slid from the $80Ks into the $60Ks, with Ethereum mirroring the decline.
Meanwhile, HYPE’s Open Interest climbed toward $1.32B from $1.19B when it traded in the $29 range. Therefore, leverage did not vanish; it concentrated in one speculative pocket.
Was this calculated positioning or reckless escalation? However, more drama was unfolding around Machi Big Brother.
Machi expands $16M+ in leveraged positions
Jeffrey Huang, known as Machi Big Brother, recorded $27.5 million in losses over 20 days on Hyperliquid and faced 145 liquidations since October 2025. Instead of slowing down, he increased risk.
He sold spot ETH and smaller tokens to raise collateral, rotating capital to support BTC, ETH, and HYPE longs.
His positions stood at 6,200 ETH, 25 BTC, and 55,000 HYPE, with the ETH long as his biggest conviction bet. Selling spot to leverage perps is a high-risk strategy that magnifies both gains and losses.
The $1.7M HYPE position also reflected a bet on the exchange gaining ground. If Bitcoin reclaimed $72K, momentum could lift all three positions.
Therefore, this was not about running out of money but a concentrated bet. However, if BTC failed to regain strength, pressure would build quickly.
OI battle: HYPE vs. BTC vs. ETH
HYPE’s Open Interest remained elevated as Bitcoin [BTC] and Ethereum [ETH] OI declined steadily.
In particular, HYPE’s OI rose toward $1.32B while price climbed. Bulls appeared in control.
Meanwhile, Bitcoin’s OI compressed sharply from post-crash highs.
As a result, leverage thinned in majors but thickened in Hyperliquid [HYPE]. This concentration created tension beneath the surface.
Conviction or pressure for Machi?
BTC traders leaned net short at 56% versus 43% long, while ETH showed an even heavier short bias near 58%. However, HYPE flipped the setup with 69% long dominance.
This gap mattered. Risk appetite weakened in majors, but conviction concentrated in HYPE. Therefore, liquidation risk turned uneven.
BTC and ETH faced short squeeze risk, while HYPE faced long unwinds. Was Machi aiming for upside or chasing redemption?
Final Summary
- Leverage did not vanish; it migrated aggressively into HYPE.
- Machi’s escalation reflected conviction or dangerous refusal to accept defeat.
