This is not the first time Machi has done this; in the past, he has repeatedly sold Bored Apes to convert into ETH margin, indicating he treats NFTs as a usable financing pool rather than collectibles. Historically, his ETH long positions on Hyperliquid have also been repeatedly liquidated or reduced, reinforcing the fixed path of 'selling non-core assets to save high-leverage main positions.'

In terms of capital flow, an internal transfusion has formed between NFTs and ETH perpetual contracts: when the liquidity of spot or NFT assets is stronger, they are sold first to supplement contract margins, effectively converting low liquidity, narrative assets into high-leverage risk exposure. This path essentially re-leverages early Web3 wealth, continuing to bet on ETH beta.

A comparable historical case is high-net-worth traders in traditional markets selling art, real estate, or private equity stakes to supplement margins, but here the assets are more on-chain and more immediate. Currently, Machi is in a 'stop-loss-style increase' phase, characterized not by risk reduction, but by using old assets to extend the gamble.

Essentially, this is capital concentration: when a few high liquidity assets are continuously used to support a single directional position, the portfolio becomes increasingly one-sided; this occurs because after NFT liquidity declines, only ETH long positions can provide the 'recovery' imagination, leading to asset allocation being pressed into a single path.

ABAB News · Cognitive Laws

True liquidity always saves the main position first.
Once collectibles are liquidated, they are no longer collectibles.
Losses do not automatically stop-loss; they simply switch to another asset to continue.