By CentBit.Online – Crypto & Blockchain Expert Bangladesh
In a dramatic turn of events, prominent crypto trader James Wynn has exited his massive $1.25 billion long position on Bitcoin, incurring a loss of $13.4 million. The position, held on the decentralized exchange Hyperliquid, was built using 40x leverage, with a liquidation price set at $105,179 .
A High-Stakes Bet on Bitcoin
Wynn initiated his long position with an $830 million investment on May 21, 2025, and quickly trimmed $400 million in profits the same day. By May 22, he had increased the position back up to $1.1 billion as Bitcoin crossed $110,000, gaining nearly $40 million in unrealized profits. He later sold 540 BTC for $60 million, securing a $1.5 million profit .
The crypto market experienced a downturn following former President Donald Trump’s announcement of a 50% tariff on all European Union imports. This news sent Bitcoin tumbling below $107,000, erasing gains across both traditional and crypto markets. Wynn’s position, with its high leverage, became increasingly risky amid the volatility. He confirmed on social media platform X that he “cut his losses” by closing his highly leveraged long position .
A Shift in Strategy
Following the closure of his long position, Wynn opened a new short position worth approximately $110 million, indicating a bearish outlook on Bitcoin’s near-term performance. This move reflects a strategic pivot in response to the evolving market conditions .
Implications for the Crypto Marketarge, leveraged positions can have on the crypto market. His actions are closely watched by other traders and can influence market sentiment. The recent volatility serves as a reminder of the risks associated with high-leverage trading, especially in a market susceptible to sudden policy shifts and geopolitical events.
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