Cryptocurrency trader loses $ 6.4 million on an unsuccessful bitcoin short

Trader James Wynn has been hit by a series of liquidations again — this time 12 times in just 12 hours. Over the past two months, he has already experienced 45 liquidations and lost almost all of his funds. This was reported by analysts of the Lookonchain platform, which tracks large transactions on the crypto market.

According to experts, Wynn repeatedly opened positions with high leverage in an attempt to recoup previous losses. However, even when he managed to make a profit, he did not close the deal but continued to increase it. As a result, the market turned against him again, and the position was liquidated. After a series of losses, the trader’s account was left with about $ 6010.

Analysts note that such situations demonstrate the risks of aggressive futures trading without clear risk management. Especially dangerous are reopening positions after losses, which often leads to a complete wipeout of the deposit.

Another high-profile loss story happened to an anonymous trader who was brought to the attention of an EmberCN analyst. According to his information, three days ago, this trader transferred USD 7 million to Hyperliquid to open short positions on bitcoin. Despite several stop losses, he lost more than $ 6.44 million. At the peak, his position amounted to 2,222 BTC (over $ 226 million), while now he has a position worth 300 BTC ($ 31.87 million) with a leverage of 40x. Current losses are estimated at $ 1.35 million, and the level of liquidation is about $ 106,765.

Cases like these once again emphasize the dangers of speculative trading with high leverage. According to Incrypted, traders have lost tens of millions of dollars on futures in the last month alone, which indicates increased market volatility and underestimation of risks by participants.