Prominent crypto trader and influencer James Wynn, known for his high-leverage strategies, has reportedly lost a substantial portion of his unrealized profits.
This is after failing to close his long position on Bitcoin (BTC) at its recent all-time high.
Wynn was sitting on nearly $40 million in floating profits, a large part of which came from leveraged trades on BTC, PEPE, and TRUMP tokens on the HyperLiquid platform.
At the height of BTC’s recent surge, his position size reached a staggering 684 BTC, worth approximately $75.34 million, with a 40x leverage.
However, despite being in a prime position to lock in a massive gain, Wynn chose to hold his position, betting on continued upward momentum.
Liquidation Risk Mounts As BTC Volatility Rattles High-Leverage Positions
Wynn’s aggressive 40x leveraged trade came with a liquidation threshold set at $103,120, dangerously close considering BTC’s recent price fluctuations.
Although Bitcoin briefly touched new highs, a sudden market pullback triggered by geopolitical uncertainty and a controversial EU trade-related announcement by Donald Trump caused rapid downward pressure on the price.
As BTC recoiled from its all-time high, Wynn’s unrealized profits quickly began to erode, moving his position from a massive gain into potential loss territory.
With such high leverage in play, even a modest price swing can flip a winning bet into a devastating loss, highlighting the inherent risk in using extreme leverage during volatile market conditions.
Massive Floating Profits in Meme Coins and BTC Had Attracted Widespread Attention
Prior to the downturn, Wynn had captured the attention of the crypto community by accumulating over $39 million in unrealized gains.
The included a jaw-dropping $23.4 million profit from a 10x leveraged long position on PEPE, a meme coin that has seen explosive growth.
He also held notable positions in the TRUMP token and Bitcoin, all with leverage between 10x and 40x.
These high-stakes trades made Wynn a focal point of both admiration and scrutiny, as his strategies demonstrated the potential for extreme gains, albeit with significant risk.
His portfolio was not just a success story but a real-time case study in the volatility and drama of high-leverage crypto trading.
Bitcoin Price Still Rises Despite Volatility, Wynn’s Gamble Becomes Cautionary Tale
Despite the turmoil surrounding leveraged positions like Wynn’s, Bitcoin itself has continued to climb.
As of today, BTC is trading at $109,716, marking a 2.39% increase over the past 24 hours and a 6.44% gain in the last week.
With a circulating supply of 20 million BTC, the market capitalization now exceeds $2.18 trillion.
The overall trend remains bullish, but traders like Wynn illustrate how market timing and risk management are critical.
His experience serves as a stark reminder: even in a rising market, overexposure and failure to secure profits can turn a winning streak into a cautionary tale, especially when massive leverage is involved.
Trump’s EU Tariff Announcement Causes Shockwaves Across Crypto Markets
The catalyst for the recent pullback was a politically charged announcement by Donald Trump, who proposed a 50% tariff on all imports from the European Union, effective June 1, 2025.
The unexpected proposal injected uncertainty into global markets, sparking immediate fears of renewed trade wars and economic strain.
Crypto markets responded with sharp declines, and Bitcoin bore the brunt of the shock, dropping over 2% within an hour of the news.
Over $300 million in long positions were liquidated, triggering a chain reaction of losses across highly leveraged traders, including Wynn.
The event highlighted how sensitive crypto markets remain to macroeconomic and political developments, reinforcing the risk profile of speculative trading strategies.
Also Read: Robert Kiyosaki Urges Bitcoin Purchases, Predicts Rapid Growth As Supply Shrinks