The $1 billion short position liquidation of the giant whale is a classic textbook case in the crypto world!
This leverage whale, who had accurately harvested the dividends of Meme coins, is now facing the logical chain of being bitten back by leverage.
On May 25, at the critical price point of Bitcoin at $107,069, when Wynn placed a short bet at 40x leverage, the on-chain monitoring system had already exposed his position data to the entire network. In the following 9 minutes, there was a violent surge of $1,228, with data showing that an anonymous address continuously bought $320 million worth of Bitcoin spot from 06:01 to 06:09, combined with concentrated buying in the perpetual contract market, forming a situation of mutual destruction for both longs and shorts.
The deep contradiction in Wynn's operation lies in the ultimate confrontation between high leverage and market reflexivity. His position data shows that in May, he used an average leverage of over 23 times, while historical data indicates that when a single trader's leverage exceeds the market average by 5 times, the probability of liquidation increases to 78%. Even more dangerously, his $8 million position in PEPE forms a hidden hedge against his Bitcoin short position; such cross-market risk exposure can amplify losses under extreme volatility.
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