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James Wynn Returns to High-Stakes Trading Despite $99M Loss

Despite a staggering loss of nearly $100 million last week, cryptocurrency trader James Wynn is back in action. Wynn recently sold $4.12 million worth of Hyperliquid (HYPE) tokens, securing a profit of over $1 million, and subsequently opened a new 945 BTC long position with 40x leverage.

Profit from HYPE Token Sale

James Wynn unstaked 126,116 HYPE tokens, valued at approximately $4.12 million, and sold them at $32.7 per token. Wynn initially purchased these tokens on May 9 and May 12 at an average price of $24.4, resulting in a profit of around $1.05 million. However, this gain is minor compared to the $99 million loss he incurred over the previous week.

High-Leverage Trading: A Double-Edged Sword

Wynn’s massive loss was the result of highly leveraged trades that initially performed well but ultimately led to liquidation. Between March 20 and May 23, Wynn accumulated $83 million in profits through a series of leveraged positions:

  • PEPE: 10x long with $23.8 million in unrealized gains.
  • TRUMP: 10x long with $6.83 million realized profit.
  • FARTCOIN: 5x long with $4.48 million realized profit.

His largest position—a $1.14 billion long on Bitcoin (BTC)—was up $39 million on May 22. However, Wynn doubled down on this BTC long, raising the position to $1.25 billion on May 24, which quickly turned against him, resulting in a $13.4 million loss.

Liquidation and Losses

On May 25, Wynn reversed his strategy to a $1 billion BTC short, which led to an additional $15.87 million loss within 15 hours. By May 30, as Bitcoin’s price fell below $105,000, Wynn was liquidated for 949 BTC, worth approximately $99.3 million at the time.

After accounting for all trades and liquidations, Wynn’s net performance flipped from a profit of $83 million to a loss of approximately $12 million in just seven days.

New BTC Long Position

Undeterred by his recent losses, Wynn has opened a new BTC long position of 945 BTC (valued at $99.7 million) with 40x leverage. His initial margin was $2,177,955.53, with a liquidation price of $104,577. Recently, Wynn deposited an additional $400,000 to adjust his liquidation price to $104,151—less than 1% away from the current BTC price.

Wynn’s Perspective on Market Manipulation

Following this high-leverage bet, Wynn addressed his followers on social media, urging them to support him by purchasing Bitcoin. He claimed that his highly leveraged positions on the Hyperliquid platform were being targeted by crypto whales seeking to liquidate retail traders.

“The moment I entered my long, they hunted me instantly. There is an agenda here, and I don’t know what it is. It can’t be just my long—maybe it’s because I’m a fish playing a whales’ game or maybe it’s because I’m bringing attention to Hyperliquid.”

While Wynn’s trading approach demonstrates a high-risk, high-reward strategy, it also highlights the volatility and unpredictability of the cryptocurrency market. Traders should exercise caution and consider risk management strategies when engaging in leveraged trades.

Tips for Managing Risk in Crypto Trading

  • Start Small: Begin with smaller positions to minimize potential losses.
  • Use Leverage Wisely: Avoid excessive leverage, which can amplify losses.
  • Set Stop-Loss Orders: Protect your positions with predefined exit points.
  • Diversify: Spread your investments across multiple assets to reduce risk.
  • Stay Informed: Monitor market trends and news that could impact your trades.

For more cryptocurrency news and updates, stay tuned to the latest developments in the market.

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