While many cryptocurrency investors welcomed the market rebound following signs of a potential end to the US government shutdown, some short sellers were caught off guard.
The rally hit popular high-leverage trader James Wynn hard, with his main Hyperliquid account liquidated multiple times over the past 24 hours. Hyperdash data shows his wallet’s value plummeted to just $5,422.
In the last 12 hours alone, Wynn faced 12 liquidations, bringing his total to 45 over the past two months, according to blockchain analytics platform Lookonchain.
Prior to the market rebound, Wynn had been holding multiple leveraged short positions on Bitcoin, essentially betting on the cryptocurrency’s price to fall.
Wynn Goes “All-In” Despite Liquidations, Betting on Bitcoin to Drop Below $92,000
Undeterred by his mounting losses, James Wynn continued to double down on his short positions.
Wynn revealed that he had transferred all his stablecoin holdings into his shorts, anticipating Bitcoin will fall below $92,000, despite market optimism following the potential end of the US government shutdown.
“In the past few hours, I’ve deployed all my stables (30%+) and thrown everything on top of my short positions. No joke. As all-in as I can get,” Wynn wrote in a Monday post on X, adding:
“I’m either going to make hundreds of millions from my leverage short positions or I will go bust,” added the pseudonymous trader.
At the time of writing, Wynn’s main account had a 40x leveraged short position worth $275,000 in Bitcoin, which would face liquidation if Bitcoin’s price recovers above $6,856.
Wynn initiated his short position when Bitcoin was trading under $101,800 and had an unrealized loss of $11,147 as of 11:20 a.m. UTC on Monday, according to Hyperdash data.
Meanwhile, the crypto market’s top-performing traders—tracked as “smart money” on Nansen’s blockchain intelligence platform—are also positioning for further potential downside in Bitcoin.
Most smart money traders were running short positions on Bitcoin, as the net perpetual short position on Hyperliquid reached $223 million on Monday, with $5.2 million worth of new shorts opened in the past 24 hours, according to Nansen.
