TLDR
- James Wynn’s Bitcoin short positions were liquidated 12 times in 24 hours due to an unexpected market rebound.
- Wynn continued to double down on his leveraged short positions despite facing significant losses.
- His main account’s value dropped to just $5,422 after the liquidations.
- Wynn transferred all his stablecoin funds into his short positions, betting on a Bitcoin price decline.
- Top traders, tracked as “smart money,” also opened significant short positions on Bitcoin amid the market surge.
The cryptocurrency market saw a sharp recovery following the possible end of the US government shutdown. This unexpected rebound caught many traders off guard, including James Wynn, a high-leverage trader. Wynn’s main account on Hyperliquid faced multiple liquidations, bringing his wallet’s value down to $5,422.
Wynn’s Liquidations Triggered by Bitcoin’s Price Surge
James Wynn’s short positions on Bitcoin were hit hard by the recent market bounce. Over the past 24 hours, his account was liquidated 12 times. According to Hyperdash data, these liquidations resulted in a drastic reduction of Wynn’s wallet value.
Despite the mounting losses, Wynn continued to increase his leveraged short positions on Bitcoin. His strategy was to bet on Bitcoin’s price falling below $92,000. Wynn posted on X, stating he had deployed all of his stablecoin funds into his short positions.
Wynn’s high-risk move left him with a 40x leveraged short position worth $275,000 in Bitcoin. If Bitcoin’s price exceeded $101,800, this position would face liquidation. As of Monday morning, Wynn’s short position faced an unrealized loss of $11,147.
Smart Money Traders Positioning for Bitcoin’s Downside
While Wynn doubled down on his short positions, “smart money” traders took a similar approach. According to Nansen’s blockchain intelligence platform, most top traders also opened short positions on Bitcoin. These traders saw a net perpetual short position on Hyperliquid reaching $223 million by Monday.
The recent rise in Bitcoin’s price has not deterred these traders. In fact, $5.2 million worth of new shorts were opened in the past 24 hours. Despite market optimism over the US government shutdown, many remain focused on Bitcoin’s potential downside.
As the market continues to fluctuate, traders like Wynn are putting their funds at risk. The sharp swings in Bitcoin’s price have created a volatile environment for those holding leveraged positions.
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