Crypto Trader James Wynn Wiped Out Again in $4.8M Liquidation

High-Leverage Bet Ends in Another Collapse

A pseudonymous trader known as James Wynn was liquidated for roughly $4.8 million on Wednesday later than taking on aggressive leveraged positions across multiple crypto assets, according to blockchain analytics firm Lookonchain.

Data from Lookonchain shows Wynn opened leveraged positions worth $4.8 million using only $197,000 in stablecoins as collateral. On Tuesday, he posted on social media, “Back with a vengeance, coming to get what’s rightly mine,” as he entered the trades.

Wynn’s portfolio included a 40x long position on 34 BTC (BTC) valued at $3.85 million, a 10x long on 122 million KingPepe (kPEPE) meme tokens worth $917,000, and a 10x long on 712 Hyperliquid (HYPE) tokens valued at $28,000. Within a day, all three positions were wiped out following sharp price moves across the market.

Investor Takeaway

Balance Plunges later than Liquidation

The wallet linked to Wynn held just $63,133 later than the liquidation, according to data from the Hypurrscan block explorer. “It viewms every time he returns to Hyperliquid to open new positions, it doesn’t take long before he gets wiped out,” Lookonchain wrote on X, formerly Twitter.

The collapse came despite Wynn’s repeated attempts to rebuild his fortune through high-risk trades on Hyperliquid, a decentralized platform popular for perpetual futures contracts. The platform allows users to apply leverage far exceeding their collateral, amplifying both gains and losses.

Leverage trading remains one of the most volatile corners of the crypto market. Even seasoned traders face liquidations within hours when price movements swing against them. Wynn’s strategy of stacking leveraged positions across correlated assets left him exposed to a chain reaction once BTC prices dipped.

Not His First Major Loss

Wynn has become one of crypto’s most notorious figures later than a string of massive liquidations. In May 2025, he lost $100 million when BTC fell to $105,000, triggering a margin call that wiped out his long positions. Within days, he returned to the market with another $100 million bet—funded in part by donations from followers—but that position was also liquidated.

The twin collapses made Wynn a cult figure on crypto social media, where his trades were followed as both spectacle and cautionary tale. later than the second loss, he deactivated his X account and briefly disappeared before resurfacing this week with the ill-fated $4.8 million positions.

Traders and analysts have likened his behavior to gambling addiction, where the lure of recouping losses fuels riskier wagers. Wynn’s repeated returns to Hyperliquid despite prior blowups underline the psychological grip of leverage and the social media attention it attracts.

Investor Takeaway

The Broader Leverage Cycle

Leverage in crypto markets has surged during 2025’s bull run, with platforms offering margin levels of 20x to 100x on popular perpetual contracts. Platforms like Hyperliquid and Binance dominate these markets, processing billions in daily notional volume. But while leverage amplifies returns in rising markets, it also accelerates collapses during pullbacks.

Analysts have warned that highly leveraged positions can trigger cascading liquidations across platforms, amplifying volatility. Wynn’s liquidation adds to a growing list of high-profile blowups that serve as reminders of the thin line between speculation and insolvency in crypto’s derivatives arena.

As the market digests this latest episode, Wynn’s saga remains a recurring feature of the leverage-fueled extremes defining digital asset trading—where fortunes are built and erased within hours.