Bitcoin’s rebound following signs that the U.S. government shutdown could soon end caught several short sellers on the wrong side of the trade. Among them was high-leverage trader James Wynn, whose main account on decentralized exchange Hyperliquid was liquidated repeatedly as prices climbed. Data from analytics platform Hyperdash showed Wynn’s wallet value collapsing to about $5,422 after a series of forced liquidations. Blockchain tracker Lookonchain said his account had been liquidated 12 times in 12 hours and 45 times in the past two months, underscoring the risks of aggressive leverage in volatile markets. Before the market turned, Wynn had been running several short positions on Bitcoin, effectively betting on a price decline. The rebound pushed those positions into loss territory, triggering margin calls and automatic closures across his trading portfolio.
Investor Takeaway
Heavy leverage leaves traders exposed when sentiment shifts quickly. Wynn’s losses highlight how fast liquidations can wipe out high-risk positions during short-squeezes.
Trader Doubles Down Despite Losses
Despite the setbacks, Wynn showed no sign of retreating. In a post on X, he said he had transferred all his remaining stablecoins into new short bets, wagering that Bitcoin would fall below $92,000. “In the past few hours, I have deployed all stables (30%) and thrown it all on top of my short positions. No joke. As all-in as I can get,” Wynn wrote. “I’m either going to make hundreds of millions from my leverage short positions or I will go bust.” At the time of the statement, Wynn’s main account held a 40× leveraged short position worth around $275,000. The position, opened when Bitcoin traded just under $101,800, would be liquidated if prices recover above $106,856. As of 11:20 a.m. UTC on Monday, Hyperdash data showed Wynn facing an unrealized loss of $11,147.
Market Context and Wider Positioning
Wynn’s losses came as the broader crypto market bounced on hopes that a resolution to the U.S. budget impasse would boost risk assets. Bitcoin climbed back above the $101,000 mark, reversing part of its recent correction and triggering liquidations for over-leveraged traders across decentralized exchanges. Data from Nansen indicated that “smart money” wallets on Hyperliquid — typically large or professional traders — continued to build short exposure despite the rebound. The platform recorded a net perpetual short position of $223 million in Bitcoin, with about $5.2 million in new shorts opened over the past 24 hours. While professional accounts appear cautious, Wynn’s aggressive stance illustrates a divide in sentiment: some traders are bracing for another pullback, while others see the rebound as the start of a broader recovery driven by improved macro signals and renewed inflows into crypto-linked funds.
Investor Takeaway
Wynn’s “all-in” short contrasts with institutional traders’ more defensive positioning. The mix of leverage and uncertainty leaves the market prone to further sharp swings.
High-Leverage Trading Risks Resurface
Episodes like Wynn’s liquidation streak recall previous market squeezes that punished over-extended short sellers during sudden rebounds. Hyperliquid’s data showed similar liquidation spikes during March and July when Bitcoin staged brief rallies from local lows. Analysts note that while decentralized derivatives platforms provide transparency, they also make liquidation data public, allowing traders to spot crowded trades. As a result, heavily shorted positions can quickly become targets during momentum reversals. For now, Wynn remains active on social media, continuing to share his trades and outlook. Whether his conviction pays off or ends in another wipeout may depend on whether Bitcoin’s recovery holds in the coming sessions.