Trader James Wynn Exits $1.25 Billion Bitcoin Bet With $13.4 Million Loss

James Wynn, a prominent trader on the decentralized exchange Hyperliquid, recently exited a significant $1.25 billion long position in Bitcoin, incurring a loss of $13.4 million. This trade, which was leveraged at 40x, had initially generated paper profits of nearly $40 million. Wynn's decision to close the position came after Bitcoin experienced a dip, which was influenced by the announcement of a 50% tariff on all EU imports by former U.S. President Donald Trump. The liquidation price for this trade was set at $105,179.

Wynn's trading activities began on May 21, when he initiated a Bitcoin long position with $830 million. By the end of the same day, he had trimmed $400 million in profits. On May 22, as Bitcoin crossed $110,000, Wynn increased his position to $1.1 billion, resulting in nearly $40 million in unrealized profits. He later sold 540 BTC for $60 million, securing a $1.5 million profit. Despite these fluctuations, Wynn ultimately decided to cut his losses, confirming the closure of his highly leveraged long positions on the social media platform X.

Prior to his substantial Bitcoin bet, Wynn had closed a long position on the meme coin PEPE, realizing a profit of $25.19 million. This move highlighted his strategic approach to trading, as he shifted his focus from altcoins to Bitcoin. The decentralized exchange Hyperliquid witnessed one of its largest trades by a single trader with Wynn's $1.25 billion long position. This significant trade underscores the growing trust among traders in decentralized exchanges, as the native token of Hyperliquid, HYPE, saw an increase in demand, with its price rising to $34.64, up 4.2% in the last 24 hours.

Wynn's trading activities have drawn attention to the risks and rewards associated with highly leveraged positions in the cryptocurrency market. His decision to exit the $1.25 billion Bitcoin bet at a loss serves as a reminder of the volatility and unpredictability of the market. Despite the setback, Wynn's strategic moves and ability to navigate the complexities of the cryptocurrency landscape continue to be a subject of interest for traders and analysts alike.