James Wynn, a well-known figure in high-leverage crypto trading, suffered another significant liquidation worth approximately $4.8 million this week, according to blockchain analytics firm Lookonchain.
On Tuesday, Wynn initiated leveraged positions totaling $4.8 million by using just $197,000 in stablecoin collateral. His aggressive move included a 40x long bet on 34 Bitcoin (BTC) valued at $3.85 million, a 10x long position on 122 million KingPepe (kPEPE) meme tokens worth $917,000, and a 10x leveraged stake on 712 Hyperliquid (HYPE) tokens amounting to $28,000. However, by the following day, nearly all those positions were liquidated.
Lookonchain highlighted Wynn’s pattern of rapidly building substantial leveraged positions, only to suffer swift wipeouts shortly after. At the time of reporting, Wynn’s wallet held a balance of just over $63,000, according to data from the Hypurrscan block explorer.
Wynn’s activity underlines the inherent risks of leveraged trading, where traders can amplify both potential profits and losses. High leverage levels mean a relatively small unfavorable move in the market can trigger a total liquidation of the trader’s balance.
James Wynn is notable in the crypto space for repeatedly entering and exiting massive leveraged positions on perpetual futures contracts, which differ from traditional futures by having no expiration date. This characteristic allows traders like Wynn to maintain large positions but also exposes them to extreme volatility and liquidation risk.
Earlier cases solidify his reputation; in May, Wynn made headlines when a $100 million long Bitcoin position was liquidated after BTC’s price dropped sharply to around $105,000. Remarkably, he returned days later to place another $100 million leveraged BTC order, funded partly by donations from his followers on social media. This subsequent position was also quickly wiped out, leading Wynn to temporarily step back from public trading updates and deactivate his social media presence on X.
His repeated liquidations emphasize the challenges and dangers of high-risk leverage trading in the volatile cryptocurrency markets, where rapid price changes can lead to fast and considerable losses.
While Wynn’s story has captured attention for the size and speed of his trades and liquidations, it also serves as a cautionary tale about the perils of margin trading, especially in meme and volatile tokens like KingPepe alongside more established assets like Bitcoin.
