Crypto Trader James Wynn Loses $15.86 Million in 15 Hours on Bitcoin Short

James Wynn, a prominent cryptocurrency trader, recently incurred a substantial loss of $15.86 million within a span of 15 hours. This loss was a result of closing a short position on Bitcoin (BTC) on the decentralized exchange Hyperliquid. The transaction, which occurred on May 25, involved a $15.53 million hit on the position itself, along with nearly $940,899 in fees, leading to a net loss of $15.86 million.

Wynn's trading strategy involved opening a $1 billion short position using 40x leverage, risking his entire $50 million wallet. This move stands as the largest on-chain bet ever placed. The short position was entered at an average price of $107,077, and if BTC rises above $110,446, the position risks liquidation unless additional collateral is provided.

This setback is in stark contrast to Wynn’s recent streak of profitable trades. Just before the BTC short, he closed a long position in PEPE, securing a massive $25.19 million profit. Additionally, a previous long on BTC had netted him another $18.36 million. Wynn had held a long position in Bitcoin amounting to 11,588 BTC, valued at approximately $1.25 billion at the time.

Over the past 75 days, Wynn has executed 38 trades on Hyperliquid, 17 of which were profitable, yielding a 45% win rate. Despite the mixed outcomes, Wynn’s overall performance remains impressive: he has withdrawn $28 million USDC from the platform, ultimately walking away with a net profit of $25.2 million. During this period, he contributed approximately $2.31 million in trading fees to Hyperliquid.

This incident highlights the risks associated with leveraged trading in the volatile cryptocurrency market. The rapid shift in strategy and the high leverage employed by Wynn contributed to the substantial loss, underscoring the importance of careful risk management and strategic decision-making in cryptocurrency trading. Even experienced traders can face significant losses due to market fluctuations and poor timing.