High-leverage trader bets on a Bitcoin drop below $92,000 despite mounting losses and a recovering crypto market.
As the crypto market rebounds on optimism over the potential end of the 40-day U.S. government shutdown, one well-known high-leverage trader is taking the opposite bet. James Wynn, a prominent figure on the Hyperliquid trading platform, has gone “all-in” on shorting Bitcoin (BTC) — even after a wave of liquidations wiped out most of his holdings within hours.
Wynn’s Liquidation Streak and Market Setup
According to on-chain data from Hyperdash and Lookonchain, Wynn’s main account was liquidated 12 times in just 12 hours, with total liquidations reaching 45 in the past two months. His wallet value reportedly sank to just $5,422, underscoring the risks of extreme leverage during volatile market swings.
Before the latest rally, Wynn had opened multiple short positions — leveraged bets predicting that Bitcoin’s price would fall. The sharp rebound in crypto prices, however, triggered automatic liquidations as BTC recovered toward $106,000 on Monday.
Despite losing significant capital, Wynn announced on X (formerly Twitter) that he had transferred all his stablecoin funds into new short positions, wagering that Bitcoin will drop below $92,000.
“In the past few hours, I have deployed all stables (30%) and thrown it all on top of my short positions. No joke. As all-in as I can get,” Wynn wrote, adding, “I’m either going to make hundreds of millions from my leverage short positions or I will go bust.”
As of Monday morning, Wynn’s main account held a 40x leveraged short position worth $275,000, which faces liquidation if Bitcoin climbs above $106,856, according to Hyperdash data. His current unrealized loss stood at $11,147 as of 11:20 a.m. UTC.
Blockchain analytics platform Nansen reported that several “smart money” traders — known for high-volume, data-driven strategies — also maintained a net short position of $223 million in Bitcoin perpetual futures on Hyperliquid, with $5.2 million in new shorts opened over the past 24 hours.
While some institutional traders expect near-term downside, analysts warn that continued Bitcoin strength above $105,000 could trigger further liquidations, amplifying volatility across derivatives markets.
Wynn’s high-stakes bet underscores the extreme risk of leveraged trading in a volatile market — a reminder that in crypto, bold conviction can turn to collapse in hours.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.