James Wynn's whale liquidation drama: the 'suicidal charge' with 40x leverage
Today, the most thrilling drama in the crypto world is the 'three-time failure' of whale James Wynn. This guy just lost $15 million on a short position last week, and today he bet $55.65 million on a short position with 40x leverage on BTC. As a result, after Trump's sudden announcement to delay tariffs on the EU, BTC rebounded 2.5% in an instant, blowing through his position and leading to a loss of $15.86 million in just six minutes. This operation is comparable to driving a tank off a cliff—flooring the gas and forgetting to hit the brakes.
Why are the whales so stubborn? To put it simply, platforms like Hyperliquid that offer 50x leverage and zero gas fees are a gambler's paradise. Data shows that Hyperliquid accounts for 64% of the on-chain contract trading volume, and the second-level execution and transparent order book encourage whales to bet their fortunes. But high leverage is a double-edged sword—just a 2.5% price fluctuation can lead to liquidation; it's all about the thrill.
Drivers behind Bitcoin prices
1. Whale liquidation triggers a cascading effect
When whales like James Wynn get liquidated, the market reacts immediately. For instance, after he closed his position this morning, BTC rebounded from $106,000 to $109,000, with a total of $208 million in positions liquidated across the network, resulting in a double kill for both bulls and bears. It's like sharks tearing into a school of fish; retail investors either follow the herd to run away or get caught in the whirlpool.
2. ETF funds are buying frantically
Bitcoin spot ETF saw a net inflow of $44.5 billion in May, with a daily high of $600 million, as institutions vote with real money. BlackRock went on a buying spree of $5.4 billion, clearly exhibiting the wealthy mentality of 'buying the dip'. The wallets of these big players act as bulletproof vests for BTC, making it hard to break the $100,000 barrier even with short-term sell-offs.
Historical reflection: The 'survivor bias' of high-leverage whales
Counterexample:
Another high-win-rate whale made a profit of $21.12 million over 12 trades, but behind its 91.7% win rate is strict stop-loss and position management, contrasting sharply with this whale's 'hold on' strategy.
If you want to learn more about cryptocurrency and get first-hand cutting-edge information, click on my avatar to follow me, and you won't get lost in this bull market!
