Bitcoin's sharp rebound, fueled by optimism surrounding the end of the 40-day US government shutdown, is dividing traders. While most observers welcome this recovery, the most aggressive short sellers are under costly pressure. High-risk trader James Wynn finds himself at the center of the turmoil, after a series of rapid losses pushed him to further strengthen his short position.
In brief
- Wynn undergoes several liquidations but commits all of his remaining stablecoins to a new short Bitcoin position with 40x leverage.
- This new short risks a full liquidation if BTC rises above $106,856, compounding two months of heavy cumulative losses.
- Market optimism linked to the end of the US shutdown is fueling Bitcoin's rise and causing a squeeze among aggressive short sellers.
- So-called smart money portfolios also retain significant net exposure to short positions, a sign of divisions over the next evolution of Bitcoin.
Heavy Liquidations Don't Hold Back New 40x Leveraged Short Position
Wynn is now “all in” on short selling bitcoin, despite 12 liquidations in 12 hours while prices were moving in the opposite direction. Hyperdash data shows its main account on Hyperliquid fell to $5,422, after a series of liquidations in the last 24 hours. Its losses span two months, totaling 45 liquidations according to on-chain data.
The sharp price rally caught Wynn off guard: he held several highly leveraged short positions, anticipating a sharper decline. However, prices rose amid optimism about the imminent end of the US shutdown, eliminating bearish traders.
Wynn opted to double down rather than pull out, moving all of his remaining stablecoins to new short positions, aiming for a drop below $92,000. In a post on
At the time of writing, its main account held a 40x leveraged short position worth $275,000. The liquidation would be triggered if bitcoin exceeded $106,856. Wynn took the position while bitcoin was below $101,800, posting an unrealized loss of $11,147 on Monday morning.
Wynn steps up shorts despite mounting losses
Nansen reports that smart money wallets hold a net short position of $223 million in Hyperliquid, with 5.2 million added in the last 24 hours.
Some traders follow Wynn's moves closely, as his strategies often reflect sudden changes in market sentiment.
Its current actions consist of:
- repeatedly resuming highly leveraged short positions despite losses;
- reinvest all of its remaining stablecoins;
- aim for a drop below $92,000;
- accept the risk of total loss;
- attract the attention of the market by the scale of its bets.
Wynn is not his first extreme bet. In June, it opened a short of $100 million shortly after losing a similar amount in late May, followed by a partial liquidation of $25 million.
Market observers now see Wynn's new all-in position as a high-risk bet amid high volatility. Bitcoin's rebound has reignited tensions between those banking on bullish momentum and those anticipating a deeper correction. Wynn remains firmly in the latter camp, despite the accumulation of his losses.
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