James Wynn, a high-risk Bitcoin trader, made another $100 million leveraged bet just days after losing a similar amount.
Wynn's latest position is worth 945 BTC with a liquidation level of approximately $103,630.
He claims "market makers" are actively targeting his positions and are deliberately manipulating the market.
Some members of the crypto community are crowdfunding donations to support Wynn's bet.
Wynn's controversial trading style has been a major source of controversy around highly leveraged positions in DeFi.
James Wynn, a multimillionaire trader known for making highly risky bets on Bitcoin, has just doubled down on the market with another $100 million.
This happened just days after this trader suffered a staggering $100 million loss.
His decision to go all-in once again, despite losing so heavily, has been a major topic of debate across the crypto industry.
Here’s a breakdown of what’s happening and why it matters.
On 30 May, James Wynn lost nearly $100 million after a massive $1.25 billion long position on Bitcoin was liquidated.
The crash happened suddenly, as Bitcoin’s price dipped just below $105,000 and triggered the margin call that wiped out his position.
The trade was highly leveraged at 40x, which means that even a small movement in BTC’s price was enough to crash the entire bet.
Rather than retreat, however, Wynn returned to the market less than a week later with another leveraged long position.
This time around, this position is worth close to $100 million.
According to blockchain data from Hypurrscan, the position stands at 945 BTC, with a liquidation level of around $103,630.
As of now, Wynn is already As of now, he’s already nursing an unrealized loss of over $677,000.
The $677 million losing bet | Source: Hypurrscan
Wynn adjusted his position by injecting an extra $480,000 in margin, which has brought his total capital at risk to roughly $3 million.
On Wynn’s part, this was a tactical move meant to reduce the likelihood of suffering a quick liquidation, even though it still leaves him highly exposed if the market turns against him.
Wynn took to Twitter (now X) to voice concerns about the ongoing bet.
He alleged that major market traders, possibly including coordinated market makers, are actively targeting his positions.
He even went as far as to call them “evil bastards” and warned his followers, “They’re coming for me again.”
Crypto influencer Altcoin Gordon echoed Wynn’s claims and stated that BTC’s price plunged within seconds of Wynn opening his new position.
This move almost moved prices to his liquidation threshold, which is a sign of possible market manipulation.
This means that market makers may be deliberately forcing prices down to liquidate Wynn for profit.
It is worth noting too, that Wynn publicly disclosing his liquidation levels may have further exposed him as a target.
Another interesting aspect of this saga is how some members of the crypto community have started to donate money to help fund Wynn’s battle against what he calls a “market-making cabal.”
According to data compiled by “dethective,” at least 24 users have sent stablecoins to Wynn’s wallet.
The largest donation is close to $8,000, after Wynn had earlier asked for contributions and promised to reimburse donors “assuming” he wins the trade.
While crowdfunding a leveraged crypto bet may sound absurd to some, it also shows how popular Wynn has become.
For supporters, he’s a David fighting against the Goliaths of the market and for skeptics, he’s merely digging a deeper hole with borrowed money.
So far, Wynn’s approach to trading has raised many questions as regards trading.
Should such trades even be allowed, especially when their sheer size can affect the entire market?
And what does it say about the state of decentralized finance (DeFi) platforms that users can become targets just for having open positions?
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.