TL;DR
- Extreme Leverage Backfires: James Wynn’s 40x leveraged Bitcoin bet collapsed as the price dipped below $105K, leading to massive losses.
- Staggering Liquidations: Approximately 1,044 BTC was liquidated in a matter of hours, totaling over $100 million in losses.
- Cautionary Tale: Wynn’s downfall highlights the risks of hyper-leveraged trading, urging both seasoned and new traders to prioritize robust risk management.
Notable Hyperliquid trader James Wynn has experienced a collapse in his leveraged Bitcoin positions, leading to losses of over $100 million. Known for his bold and controversial style, Wynn’s latest setback underscores the inherent peril of excessive leverage amid unpredictable market swings.
Risky Bets in a Volatile Market
Wynn, who has long branded himself as an “extreme degenerate” in the crypto arena, placed enormous bets on Bitcoin’s continued upward momentum using 40x leverage. Initially, he built up a massive long position, confident that Bitcoin would surge higher.
However, as market sentiment shifted and Bitcoin’s price dipped below the crucial $105,000 threshold, amplified by external pressures like tariff announcements and broader economic jitters, Wynn’s high-risk strategy began to unravel.
The sudden downturn left his leveraged positions exposed, rapidly eroding his gains and igniting calls for a more cautious approach in an increasingly volatile space.
Liquidation Details and Market Shifts
As Bitcoin’s price fell further to around $104,950 and then to $104,150, Wynn’s positions faced brutal liquidations. The losses were staggering: one segment of his position delivered a blow by liquidating 527.29 BTC, another saw 421.8 BTC wiped out, and a smaller tranche of 95.51 BTC was also liquidated.
In total, roughly 1,044 BTC vanished from his account, translating to losses north of $100 million within a matter of hours. Despite this catastrophic hit, Wynn still holds a remaining 40x leveraged long position estimated at about $167 million, an enduring reminder of the dangers that come with trading on extreme leverage.
Aftermath and Lessons for Traders
Following the liquidation, Wynn took to social media with a pointed message, lamenting the corruption he sees in the markets and suggesting that perhaps holding Bitcoin on spot, or even in cold storage, might be the safest route.
One thing for sure is that I have exposed just how corrupt these markets are.
Guess it’s better to just buy and hold $BTC on spot / cold storage it.
— James Wynn 🐳 (@JamesWynnReal) May 30, 2025
His experience serves as a stark cautionary tale to both seasoned traders and newcomers about the necessity of robust risk management. As the crypto community digests this news, the incident is expected to spark intensive debate about sustainable trading practices and the challenges posed by hyper-leveraged positions in an ever-evolving digital asset landscape.
