Crypto Trader James Wynn Faces Another Huge Liquidation Worth $4.8 Million
High-leverage trader James Wynn was liquidated for $4.8 million just a day after opening new positions, showcasing the volatility of leveraged trading.
James Wynn, known for his high-risk trading in crypto, recently faced liquidation amounting to approximately $4.8 million on a Wednesday. This unfortunate event was reported by Lookonchain, a blockchain analytics company. On Tuesday, Wynn had initiated $4.8 million in leveraged trades using $197,000 in stablecoins.
Wynn boldly declared he was “back with a vengeance, coming to get what’s rightly mine” as he placed his large bets. He opened a 40x long position on 34 Bitcoin (BTC), estimated at $3.85 million, a 10x long on 122 million KingPepe (kPEPE) meme tokens, worth $917,000, and a 10x position on 712 Hyperliquid (HYPE) valued at $28,000. However, by Wednesday, he had lost nearly everything.
The wallet linked to Wynn reportedly showed a balance of $63,133 at the time of the latest report from the Hypurrscan block explorer. “It seems every time he returns to Hyperliquid to open new positions, it doesn’t take long before he gets wiped out,” commented Lookonchain, pointing to the significant risks associated with leveraged trading and the likelihood of substantial losses.
Wynn’s Notoriety in the Crypto Sphere
Wynn has gained significant fame within the crypto community for amassing and losing several hundred million dollars through leveraged trading of perpetual futures contracts, which are akin to traditional futures contracts but do not have an expiration date.
Numerous exchanges provide traders the ability to employ leverage, enabling them to hold positions far larger than their deposited collateral, which can lead to both massive gains and devastating losses in a short period.
He made headlines earlier in May, as he was liquidated for $100 million after BTC’s price declined to $105,000, which eliminated his long BTC positions. Undeterred, he re-entered the market with another $100 million leveraged BTC order shortly thereafter, soliciting followers on social media for funds to continue trading. Unfortunately, this second position was also liquidated, leading Wynn to temporarily deactivate his X social media account and take a hiatus from high-leverage crypto trading.
