While most cryptocurrency investors welcomed the market recovery following news of a potential end to the U.S. government shutdown, some short sellers found themselves in a difficult position after the sudden price rebound.
The cryptocurrency markets have witnessed a strong recovery that led to the liquidation of the famous trader James Wynn's main account on the Hyperliquid platform several times over the past 24 hours, reducing his wallet balance to $5,422, according to Hyperdash data.
The Lookonchain platform for blockchain analytics indicated that the sudden market surge led to the liquidation of positions 12 times over 12 hours, bringing the total number of liquidations to 45 times over the past two months.
Before this recovery, Wynn held several highly leveraged short positions on Bitcoin.
, which are essentially bets on price declines.
Wynn doubles down on his bets despite the liquidation and expects Bitcoin to drop to $92,000
Despite consecutive losses, Wynn continued to strengthen his short positions, announcing that he had converted all his stablecoin funds into short selling, expecting the price of Bitcoin to drop below $92,000 despite market optimism about the end of the government shutdown.
Wynn said in a post on platform X on Monday:
“In the past few hours, I used all my stable funds (30%) and added them to my short positions. I’m not joking, this is the most I can do. Either I make hundreds of millions from my short positions or I go completely bankrupt.”
At the time of writing this report, Wynn's main accounts held a short position with a leverage of 40 times worth $275,000 on Bitcoin, which will face liquidation if the price of Bitcoin exceeds $106,856.
Wynn opened his positions when the price of Bitcoin was below $101,800, and Hyperdash data recorded unrealized losses of $11,147 at 11:20 AM UTC on Monday.
Data from the Nansen platform, which tracks the performance of what is known as 'smart money', indicates that the most successful traders in the industry continue to take short positions on Bitcoin, with net permanent short positions on the Hyperliquid platform amounting to about $223 million on Monday, opening new short positions worth $5.2 million over 24 hours.
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