A $74K deposit saved a trader Jame’s $81M BTC long from liquidation—just $40 above the margin wipeout on 40x leverage.
BTC volatility triggered $1.12M in losses from forced liquidations, crushing Wynn’s position and draining his crypto portfolio.
After a $10M portfolio crash and -$20.5M lifetime PNL, Wynn exits trading, leaving Hyperliquid with only $706K in equity.
Bitcoin trader James Wynn narrowly avoided liquidation on a massive 40x leveraged long position valued at over $81 million. The trade, placed on Hyperliquid, came within $40 of being fully liquidated as BTC dipped to $103,899, just above the margin threshold of $103,859. According to Arkham Intelligence, Wynn’s position was margin-backed by $1.48 million in cross-mode, meaning the entirety of his capital was at risk.
The unrealized loss on the trade crossed $1.24 million at peak drawdown, with BTC displaying sharp volatility between $106,000 and $103,000. Traders flagged this behavior as indicative of liquidity hunting, where price action targets weak margin positions in an attempt to trigger forced exits.
Strategic Deposit Buys Critical Breathing Room
Just before the drop, Wynn moved $74,000 in USDC from Binance to Hyperliquid via an on-chain bridge, pushing his liquidation price low enough to survive the dip. According to Lookonchain, the deposit occurred within an hour of BTC’s sharp reversal, underscoring precision timing in a fast-moving market.
https://twitter.com/lookonchain/status/1930640710925250633
Despite surviving the drop, Wynn’s position still carried more than $1 million in floating losses. His 776.9 BTC long was in deep negative ROE territory, further strained by rising funding rates. The calculated risk echoed a high-stakes play typical of institutional-style trading, though few retail traders would match this level of exposure.
Liquidations Accelerate as Portfolio Craters
Arkham Intelligence again reported that Wynn was liquidated three times during BTC’s decline from $106,000 to $103,200. The forced closure of 379 BTC positions realized $1.12 million in losses and broke through technical support levels, intensifying downside pressure.
Wynn’s public wallet showed heavy interaction with centralized exchanges and a portfolio crash from $10 million in early 2024 to just $7,750. Remaining assets were mostly in USDC, USDT, and small-cap tokens like MET and VERSA.
Lifetime Losses Exceed $20M as Trader Closes Book
Wynn has since closed all positions, cementing a lifetime PNL of -$20.5 million over 1,221 days of trading. While total withdrawals from exchanges stood at $41.6 million, most gains appear to have been re-lost. His Hyperliquid equity now sits at $706,000.
On X, reactions ranged from ridicule to reflection, with many calling the episode a cautionary tale about high leverage. As BTC hovers above $104K, the market remains on edge, caught between breakout hopes and deeper downside fears.
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