Bitcoin Whale Liquidation Record: 40x Leverage Long, Losing 3 Million Dollars in a Day

At 12:40 PM on May 29, a shocking scene unfolded in the Bitcoin market. Whale James Wynn's $496 million long position in Bitcoin was like a boulder hanging over a cliff. When the BTC price dropped to around $107,000, part of his position was automatically liquidated by the system, and $2.95 million evaporated in an instant. This was not his first liquidation — the $87 million profit had already been completely wiped out, and now even the principal has lost $3 million.

This big player’s operations are akin to “dancing on the edge of a knife”: using 40x leverage to go long on 4,604 Bitcoins, equivalent to treating 1 Bitcoin as 40. Opening price was $108,334, liquidation price was $106,314, and the price only needed to drop 2% to trigger liquidation. As a result, the Bitcoin price did indeed drop near the liquidation line, and the system, like a merciless sickle, shattered his position into pieces.

This incident serves as a wake-up call for ordinary investors: the crypto market is not a casino; 40x leverage is like walking a tightrope over a volcano. Those seemingly lucrative contract trades are backed by bloody liquidation histories. Remember, when you are using leverage to chase tenfold or hundredfold returns, the market is also leveraging to magnify your greed.

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