Bitcoin News Today: High-Leverage Reentry: Wynn's $1.26B BTC Gamble in Turbulent Market

The crypto market is witnessing a high-stakes reentry by James Wynn, a pseudonymous trader known for his leveraged bets on Bitcoin (BTC) and memecoins. As of July 2025, Wynn has reopened a 40x leveraged BTC long position, valued at approximately $1.26 billion, using $31.6 million in margin to control 11,588 BTC. This move comes after a tumultuous period marked by a 26% monthly win rate and cumulative losses exceeding $100 million, including a $99.3 million liquidation in May. The trader's current position is vulnerable to a $105,179 liquidation price, a level that, if breached, would erase his entire margin.

Wynn's trading history underscores the volatile nature of leveraged positions in crypto. In May, he held a 40x leveraged BTC long with an unrealized profit of $39 million before Bitcoin's price decline triggered cascading liquidations. Over a 12-hour period, he lost 520 BTC ($54 million) and 982.5 million kPEPE tokens ($11.6 million) in a single day. By June, his portfolio had plummeted from $90 million to $17 million, with a floating loss of $136,000 still outstanding. Despite these setbacks, Wynn has persisted, recently depositing $1.3 million into Hyperliquid to fund new trades, including a 10x leveraged Dogecoin (DOGE) position that suffered a $22,627 loss.

The trader's strategy has drawn both scrutiny and admiration. Critics highlight the risks of public trading, noting that transparency can amplify emotional decision-making during market swings. Wynn's open positions on Hyperliquid, for instance, have become a focal point for retail traders and algorithmic strategies, with his actions influencing short-term volatility. Proponents, however, argue that his high-leverage bets exemplify the potential for rapid capital growth in crypto, even as they caution against the compounding risks of margin calls and partial liquidations.

Wynn's activities have also had a measurable impact on decentralized exchanges (DEXs). His trading activity on Hyperliquid has driven platform metrics, including a $1.5 million fee from a single profitable trade in May. The platform's HYPE token has surged 113% in 30 days, partly attributed to the visibility generated by Wynn's trades. However, his recent nine consecutive liquidations on Hyperliquid-spanning BTC, Ethereum (ETH), and PEPE-highlight the fragility of leveraged positions in a market where a 4.85% price drop can trigger margin calls.

The broader market context adds to the complexity of Wynn's bets. Bitcoin's price action in 2025 has been characterized by sharp corrections and rapid rebounds, with long-term holders realizing $3.5 billion in profits in a single 24-hour period. Meanwhile, geopolitical uncertainties, including U.S. tariff policy shifts and China's trade dynamics, have exacerbated volatility. Wynn's public calls for "going max long" during downturns contrast with cautionary analyses from blockchain analytics firms like CryptoQuant, which warn that whale activity on Binance suggests potential profit-taking ahead of major price moves.

Despite his losses, Wynn remains a vocal advocate for leveraged trading, arguing that "$0.1 billion is not a lot of money in the world of money". His recent social media posts emphasize transparency, with one stating, "It's better to just buy and hold BTC on spot or cold storage," a sentiment reflecting growing skepticism toward leveraged speculation in an unpredictable market.

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[1] James Wynn's $1.26B Bitcoin long at 40x leverage risks liquidation if BTC hits $105,179 (https://citizenwatchreport.com/james-wynns-1-26b-bitcoin-long-at-40x-leverage-risks-liquidation-if-btc-hits-105179-this-is-the-kind-of-setup-that-has-historically-preceded-flash-crashes/)

[2] James Wynn Shows How He Loses $87 Million in Real-Time on Hyperliquid (https://cryptonews.com/exclusives/trader-james-wynn-lost-87-million-what-now/)

[3] James Wynn Closes His 40x BTC Long Position After $99M Liquidation Loss (https://coinfomania.com/james-wynn-closes-his-40x-btc-long-position-after-99m-liquidation-loss/)

[4] James Wynn Is Back With 40x Leverage BTC Long Position (https://themarketperiodical.com/2025/07/17/crypto-trader-james-wynn-is-back-with-40x-leverage-bitcoin-long-position-will-he-win-this-time/)

[7] James Wynn Liquidation Drama: $385K Loss in BTC and PEPE (https://meme-insider.com/en/article/james-wynn-liquidation-drama-unfolded/)

[9] James Wynn's Big Wins (and Losses): The Truth About Trading With Leverage (https://cointelegraph.com/explained/james-wynns-big-wins-and-losses-the-truth-about-trading-with-leverage)