Crypto Trader James Wynn Risks It All (Again) With 40x Leveraged Bitcoin Short

Crypto trader James Wynn returns to high-leverage trading with a 40x short position against Bitcoin.

The controversial trader opens $1.49 million position despite Bitcoin’s recent gains across multiple timeframes, risking complete liquidation above key price levels.

Crypto News: Wynn Opens $1.49 Million Short Position With Tight Liquidation Margin

James Wynn has opened a 40x margined short bet on Bitcoin at 13.9 BTC for $1.49 million on the Hyperliquid trading platform.

The short trade can be closed at $108,630, with minimal margin against Bitcoin price movement in the current market environment.

Bitcoin currently enjoys bullish dynamics across all time frames with a 5.2% rise over seven days, 2.5% over 30 days, and 76.7% over one year. The numbers indicate persistent upward pressure that will be triggering Wynn’s liquidation point within seconds.

The crypto trader confesses the contrarian element of his trade, tweeting shorting while Bitcoin pumps in what appear to be self-deprecating comments about his timing.

The level of leverage and size of Wynn’s position expose him to high risk with very little downside protection.

Hyperliquid is where this high-leverage trade is being executed, with Wynn prepared to fund $75 million in the event that the exchange increases the highest leverage to 50x. The current 40x leverage already creates substantial risk amplification.

Trader Proposes Massive $75 Million Deposit for Increased Leverage Access

Wynn has announced plans to deposit $75 million USD on Hyperliquid if the platform restores maximum leverage to 50x from current levels.

The proposed deposit would go into the long positions rather than his current short approach.

The trader is confident in his preparedness to take advantage of trading leverage, meaning he would start long positions with the massive capital injection.

That is a different strategy from his current bearish Bitcoin exposure, which reflects tactical flexibility in accordance with the available leverage.

Wynn hopes to earn a weekend profit of $5 million to add another 46.7 Bitcoins to his cold storage. This would take a lot of price movement and good position control given his present short exposure and market situation.

The crypto trader has long-term bitcoin optimism in his opinion, even though he currently shorts it, referring to the cryptocurrency as the greatest money and store of value ever created.

He tells retail investors to employ accumulation techniques, referencing Bitcoin’s finite 21 million supply and capability to store wealth on a five to decade time frame basis through a bull cycle in the cryptocurrency.

Wynn Shifts Focus From Meme Coins While Maintaining Bitcoin Accumulation Strategy

Wynn remarks on cultural trends in the meme coin space, with moves away from past dog tokens towards newer projects like fartcoin.

The trader characterizes current meme coin culture as not being as wholesome as it used to be in previous times when such investments had more community-driven approaches.

The experienced trader discusses needs to evolve to accommodate changing meme coin trends with his top priority still on Bitcoin accumulation strategies.

The evolution indicates acknowledgment of changing market dynamics in speculative cryptocurrency markets.

Even though he himself is short, Wynn advocates for the ownership of Bitcoin as a long-term wealth holding plan.

He cites the limited 21 million supply of Bitcoin and positions one Bitcoin ownership as placing owners in the top 1% within a period of five years.

The trader warns that Bitcoin purchasing will increasingly become difficult for regular crypto investors on longer time horizons.

His message promotes establishing longs by doing small incremental purchases of 0.01 Bitcoin lots rather than attempting gigantic single purchases.