Bitcoin Price Drop Triggers $1.3 Million Loss for Trader

Trader James Wynn faced significant losses on July 1, as two major Bitcoin liquidations wiped out over $1.3 million from his account. The liquidations were triggered when the price of Bitcoin (BTC) dipped below the $106,000 support level, causing margin calls on his highly leveraged long positions. The first liquidation occurred when BTC fell to $105,812, resulting in a loss of 4.59 BTC worth approximately $486,000. Wynn's entry price was set at $107,439, and with 40x leverage, the margin levels quickly collapsed as the price approached the liquidation threshold of $105,503.76.

Minutes later, Wynn experienced another liquidation totaling $800,000. These trades were executed between $105,812 and $106,113, bringing the total liquidated volume to over 4.58 BTC. The realized loss from these trades amounted to $7,033.87 in USDC. The Hyperliquid trading dashboard revealed that Wynn's BTC long position was valued at $863,973.83, with no offsetting short exposure. The entry price was $107,439.10, while BTC was trading at $105,865.00, resulting in an unrealized loss of $12,706.31. The liquidation was imminent, with only $360 separating Wynn from the liquidation threshold, indicating a 58.83% return on equity (ROE) drawdown.

Wynn's total account equity plummeted to $13,847.41, with margin usage at 155.98% in the red. The cumulative profit and loss (PnL) marked a staggering -$20.5 million. The absence of any hedge or risk reduction tools exacerbated the exposure during the volatility. Arkham data showed that Wynn's Hyperliquid-linked wallet had moved over $20,000 in USDC across various protocols in just three days. Transfers were made through Socket Gateway and Hyperliquid Bridge2, with some inflows traced to relayer wallets and the Null Address. A $204.66 USDC fee sent to Coinbase suggested fiat off-ramping or settlement.

Arkham's wallet network map displayed hundreds of active connections from Wynn's main wallet, linking to centralized exchanges, decentralized finance (DeFi) contracts, bridges, and smart tools. This confirmed Wynn's deeply embedded trading activities. Notable activity spikes occurred between May and early June, indicating heavy cross-chain deployments. Despite the Hyperliquid activity, Wynn's exposure is now minimal and remains entirely directional toward BTC longs. The portfolio now holds just $4,008.98 across USDC, WSTETH, USDT, and ETH, with previous inflow data from April and May confirming higher balances that are now seemingly withdrawn or lost.

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