Wealthy Crypto Investor James Wynn's $87 Million Fortune Vanishes in a Five-Day Span.
Bitcoin Trader, Known for Bold Moves, Suffers Massive Losses Following Large Positions
In early May, prominent Bitcoin investor James Wynn embarked on a significant long position worth approximately 390 million dollars. With a margin of just under 10 million dollars and a 40x leverage, Wynn rapidly increased his position to 1.25 billion dollars.
When Bitcoin surpassed 110,000 dollars, Wynn's unrealized gains reached 87 million dollars. However, U.S. President Donald Trump's announcement of potential 50% tariffs on European Union goods on June 1st caused a market shake-up, leading to a drop in Bitcoin's value.
Wynn then reversed his position, opening a short position of 1,038 BTC for 107,711 dollars, with a liquidation price of 149,100 dollars. He closed this position with a 25 million dollar profit, momentarily securing a victory.
Following his profit, some Twitter users celebrated Wynn as a "legend" while others hoped for his losses. Responding to these comments, Wynn made a special statement.
However, just hours after closing his 25 million dollar profit, Wynn re-entered the market with a fresh long position worth 684 BTC (75.3 million dollars). His liquidation price was set at 103,120 dollars. Continuing to increase his position, Wynn's new liquidation price reached 108,010 dollars.
Wynn is also active in the PEPE memecoin market. Previously, he bought 7.2 trillion PEPE for 182,000 dollars, which he later sold for approximately 34 million dollars, leaving him with 443.7 billion units (currently worth over 6 million dollars).
According to Lookonchain, Wynn executed four profitable PEPE trades on the Hyperiquid exchange, generating 25.4 million dollars. However, suspicions arose when Wynn transferred 240 billion PEPE to Binance, leading to the sale of his remaining PEPE to fund his BTC long position.
During this same period, an anonymous investor, known by the pseudonym "0x2258," made a profit of 5.6 million dollars by consistently taking opposite positions to Wynn's moves in the crypto market. This investor particularly capitalized on Wynn's highly leveraged Bitcoin and Ethereum positions. For instance, on May 26, when James Wynn returned to long Bitcoin positions, 0x2258 shorted both assets, accruing 1.7 million dollars in unrealized profits.
In just five days, Wynn's 70-day portfolio, worth 87 million dollars, was nearly wiped out. This instance underscores the high risks associated with large trades in the crypto market.
- Data on the Hyperliquid exchange, where Wynn made his big trades, is publicly available, enabling the anonymous investor to profit from taking opposite positions.
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In the world of cryptocurrency finance, the block chain proved to be both a platform for rapid gains and significant losses for investor James Wynn, as he leveraged a large position to capitalize on Bitcoin's price surge, only to see his investments dwindle just hours later due to market volatility.
Amidst the financial turbulence, an anonymous investor, known as "0x2258," profited from Wynn's misfortunes by invested in opposite positions, capitalizing on the high risks associated with Wynn's using high leverage in the crypto market.
