- High-profile crypto trader James Wynn recently suffered a $17.5 million liquidation.
- After blaming market manipulation, he raised $54K in donations for new trades.
- The events occurred on Hyperliquid, which saw a record $200M in liquidations.
The decentralized exchange Hyperliquid experienced its largest-ever liquidation day, with over $200 million in leveraged positions wiped out in a storm of volatility.Pseudonymous trader James Wynn, once riding a $100 million unrealized profit, is now licking the wounds of a $17.5 million account loss.
After placing a $1 billion long bet on Bitcoin with 40x leverage, Wynn’s prediction of BTC surging to $115,000 fell short. The market reversed, taking down not only Wynn’s position but also his $40 million bets on memecoins like PEPE, TRUMP, and FARTCOIN.
Hyperliquid: A Lesson for Aggressive Traders
Despite claiming to quit perp trading, Wynn made a dramatic return within days, this time asking followers for donations to “fight the market making cabal.”
Wallet analysis shows over $54,000 in donations, which he used to open a new 40x BTC long on Hyperliquid, coming within $70 of liquidation before narrowly escaping with a $60,000 profit.
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Other Whales Fuel the Fire
The on-chain chaos was not limited to Wynn. Another Hyperliquid legend, “HLwhale,” who was previously liquidated in a head-to-head with Wynn, deposited $5 million to short BTC for $115 million from $107,000, now sitting on a + $4 million PnL. Meanwhile, Hyperliquid recorded its largest-ever liquidation day, with $200 million wiped out across positions.
Another major player, FrontrunnersX, opened a $550 million BTC short, sending shockwaves through the derivatives space and helping fuel a broader “risk-off” sentiment.
HYPE Technical Breakdown: What’s Next?
As the drama unfolds, HYPE, Hyperliquid’s native token, has taken a hit, as per CoinMarketCap. It fell 5% in the past 24 hours, now trading at $39.34, triggered in part by Tony G Holdings’ high-profile purchase of 10,387 HYPE tokens at $42.24, a move that led to a textbook “buy the rumor, sell the news” response.
The chart below shows that HYPE was rejected at $39.24, the 23.6% Fib retracement of the April–June rally. The MACD histogram is weakening from +1.2 to +0.44, suggesting fading momentum.
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Meanwhile, BoP (Balance of Power) shows bearish pressure increasing, indicating smart money may be distributing. Bollinger Bands show HYPE has exited the upper band and is now riding the median line; a break below could confirm downside continuation.
If $38.08 (10-day EMA) fails to hold, traders may look to $37.28 (10-day SMA) and $28.48 (50-day SMA) as downside targets.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
