TL;DR
- James Wynn – a well-known figure in the digital asset space for his high-risk leveraged trades – recently gained notoriety for an astounding series of trades that ultimately led to a total wipe-out, as revealed in the latest Lookonchain update.
- In an interesting turn of events, an anonymous trader capitalized on Wynn’s volatility, amassing a profit of $5.6 million in just three days by consistently betting against his positions.
The Adventures of Wynn
Earlier this month, James Wynn took a daring leap into the cryptocurrency market by entering a long position in Bitcoin worth approximately $390 million. Initially, this position boasted a liquidation price of $96,600 and required a margin just shy of $10 million. In a bold move, Wynn subsequently inflated his position to a staggering $1.25 billion, leveraging it at 40x.
At one stage, Wynn appeared to be riding high, enjoying an unrealized profit of $87 million due to a Bitcoin rally that pushed its price above $110,000. However, the momentum took a sharp turn toward the end of last week, as Trump’s recommendation of a 50% tariff on the European Union sent the cryptocurrency market spiraling downward. This downturn quickly eroded a considerable portion of Wynn’s gains.
In response to the market’s downward trend, he flipped to a short position, opening a contract of 1,038 BTC at $107,711, aspiring for a liquidation price of $149,100. Ultimately, he decided to close all contracts with an impressive profit of $25 million, prompting mixed reactions from followers on social media.
While many applauded his audacity, some critics expressed a desire to see him fail. Addressing his detractors, Wynn tweeted:
For all my haters out there who so very much loved to see my portfolio swing down by $60,000,000. Just know, now you get to see it swing BACK UP INTO THE HUNDREDS OF MILLIONS. I repeat HUNDREDS OF MILLIONS.
This confidence was short-lived, however. Following the profits declared, Lookonchain revealed that Wynn swiftly re-entered the crypto fray and longed Bitcoin again with 40x leverage, a new position that had risks of its own.
Betting Against Wynn and Big Loss
Wynn’s monumental trades were executed on the decentralized exchange Hyperliquid. As a result, they were visible to other market participants. Lookonchain reported an intriguing story of one astute trader who decided to take advantage of Wynn’s trading strategy, making $5.6 million over three days by consistently betting against him.
This anonymous trader shorted Bitcoin each time Wynn went long and vice versa. Trading under the name address 0x2258, they initiated a short position in Bitcoin and Ethereum on May 24, closing it the next day for a profit of $1.36 million. Subsequently, when Wynn took a short position, this proactive trader capitalized by going long, netting another $2.54 million on May 26. Finally, they closed more short positions, registering at least $1.7 million in profits.
Speculation arose about the trader’s identity, with some positing that it could be Wynn himself, hedging his risks. However, he disavowed such claims, emphasizing that he only operates through one public account.
Ultimately, the recent Lookonchain update debilitatingly revealed the extent of Wynn’s losses: he took 70 days to build his portfolio to $87 million but only five days to almost entirely deplete it. The cryptocurrency space remains unpredictable, demonstrating that even the boldest players can face rapid downfalls.
As the crypto market continues to evolve, traders and investors alike can glean significant lessons from James Wynn’s tumultuous journey — a reminder that with great risk can come great reward, but also great loss.
