From Cointelegraph

June 17, 2025 09:40 AM:

James Wynn, a trader on Hyperliquid, lost nearly $100 million in liquidations after Bitcoin dropped below $105,000. His leveraged bets collapsed, highlighting the risks of high leverage in volatile crypto trading. Wynn gained a reputation for high-risk trading, frequently holding positions over $100 million. Some exchanges offer leverage up to 125x.

Wynn’s $99.3-million liquidation on Hyperliquid unfolded rapidly. He opened a 40x leveraged long position on Bitcoin, leading to multiple liquidations as the price dropped. Wynn’s losses totaled approximately $99.3 million in one week. Analyst Dethective later alleged that Wynn was trading against his own positions, not truly incurring losses.

Following his $100-million loss, Wynn alleged market manipulation and appealed for donations to recover his losses. Despite earning $85 million earlier, his losses mounted to over $25 million in May and June. Binance co-founder Changpeng Zhao proposed a dark pool DEX to reduce front-running and slippage for large traders.

Wynn’s risky trading reflects the high-risk, high-reward ethos of crypto. From a $7,000 investment that grew to $25 million, Wynn escalated to leveraged positions on Hyperliquid. Despite massive losses, he continued trading, driven by a gambling mindset. Leverage trading in crypto remains controversial, with platforms offering up to 125x leverage.

External macroeconomic events, like US tariff policies under President Trump, added pressure to Wynn’s leveraged positions. Market uncertainty triggered Bitcoin’s price drop, contributing to Wynn’s liquidation. Analysts pointed to Trump’s tariff rhetoric as a key risk catalyst. Wynn’s case highlights the vulnerability of leveraged trades to broader economic shifts.

Dethective accused Wynn of market manipulation, trading against himself on Hyperliquid. Retail investors questioned Wynn’s motives, eroding trust in his trading activities. Dethective’s findings exposed the truth behind Wynn’s alleged losses. Traders can protect themselves from FOMO and greed by adopting disciplined trading practices, creating a clear trading plan, and diversifying investments.

Read more at Cointelegraph: This crypto trader just lost $100M, but he’s still not done