James Wynn’s 40x Bitcoin Short Bet Risks Total Loss
Crypto trader James Wynn has liquidated his entire portfolio, keeping only long-term Bitcoin in cold storage. He has allocated 30% of his assets to 40x leveraged Bitcoin short positions on Hyperliquid, opening a 0.96 BTC short worth over $110,000. Wynn bets on a market downturn despite Bitcoin trading around $106,460. On-chain data show he recently collected a USDC referral reward. His record includes over $22 million in losses and a 33% win rate, with unverified reports of $250 million profit in two weeks. Analysts predict a drop to $92,000 as liquidity trends suggest possible volatility. Traders should monitor this high-leverage Bitcoin short as a barometer of market risk appetite.
Bearish
James Wynn’s highly leveraged Bitcoin short against a backdrop of liquidity inflows and mixed market sentiment is likely to exert additional downward pressure on Bitcoin’s price. In the short term, this $110,000 0.96 BTC 40x short could amplify selling pressure if liquidated, increasing volatility. Over the longer term, if the bet fails and triggers a margin call, market participants may face a rapid unwind of positions, further bearish impacts. However, if the market avoids a sharp correction, the news may have limited lasting effects. Overall, this high-risk leverage strategy underscores a bearish outlook on Bitcoin’s near-term price action.