Veteran crypto trader James Wynn, known for turning small positions into staggering profits, has made headlines after losing over $99 million in just one week.
Once hailed for transforming $3.5 million into nearly $178 million through aggressive long positions on Bitcoin, Wynn now describes the market as fundamentally “corrupt.”
In a post on X (formerly Twitter), he reflected on his losses and advised others to simply “buy and hold $BTC on spot / cold storage.”
His comments came after his massive 949 BTC long position was liquidated when Bitcoin’s price dipped below $105,000.
From $3.5M to $178M And Then Back to Zero
Wynn’s leveraged position was one of the most ambitious bets in recent crypto trading history.
Using only $3.5 million of his equity in perpetual futures, he went all-in on Bitcoin, holding a position worth $178 million.
The strategy reflected unwavering confidence in BTC’s upward trajectory. However, the market moved against him.
Over the course of seven days, from May 23 to May 30, Wynn’s profits evaporated.
The final blow came when Bitcoin dropped below his liquidation price of $104,607, resulting in the automatic closure of his position and a total loss exceeding $99 million.
Liquidation Sparks Debate Across Crypto Twitter
News of Wynn’s liquidation quickly went viral on crypto Twitter, sparking debates over the dangers of using excessive leverage.
Many users mocked the irony of a seasoned trader only now acknowledging market manipulation and risks, with one commenter quipping, “Took you $100M to realize that?”
Despite the backlash, Wynn’s situation highlights a broader issue: leveraged trading remains a double-edged sword.
While it can multiply gains in a bullish market, it can just as quickly destroy portfolios during a downturn, especially when large positions are not adequately hedged.
Data Reveals Severe Financial Impact and Continued Losses
Hyperdash data shows the full extent of Wynn’s financial devastation. Between May 23 and May 30.
His account registered a net weekly loss of $99,197,131.51, along with an unrealized loss of $4.39 million and a return on equity of -98.84%.
Even after his major liquidation, Wynn remains active in the market. He currently holds another long position worth 1,687 BTC, dangerously close to liquidation with a set price at $104,610.
As of the latest data, this position is also bleeding, posting a paper loss of $4.83 million as Bitcoin struggles to hold its current levels.
Bitcoin Price Declines, Undermining Bullish Sentiment
Wynn’s loss occurred in the midst of a broader Bitcoin price downturn. At present, BTC is trading at $105,219, down 2.78% over the past 24 hours and nearly 5% over the past week.
The ongoing volatility has impacted retail and institutional investors alike, especially those using leverage.
Bitcoin’s current market cap stands at just over $2 trillion, with a 24-hour trading volume exceeding $42 billion. While many still view Bitcoin as a long-term asset worth holding.
Wynn’s experience serves as a stark reminder of the risks that come with high-stakes speculation in an unpredictable and often unforgiving market.