A high-risk crypto speculator suffered a wipeout on HyperLiquid before immediately returning to the market with another round of oversized leveraged shorts on GMX, mirroring past collapses from impulsive traders.
The gambler — known for previously funneling hundreds of thousands of dollars into crypto casinos like Stake and Roobet — was liquidated over the weekend after placing aggressive shorts ahead of Sunday’s rebound. The failed setup involved roughly $168 million in notional positions across bitcoin (BTC$84,716.87), XRP (1.9485), and zcash (ZEC$608.15), along with smaller bets on ASTER, BNB, and RESOLV. The liquidation resulted in a $5.5 million realized loss.
The trades came as multiple crypto assets hit multimonth lows on Friday and sentiment indicators slid into “extreme fear,” creating a volatile backdrop for high-leverage positions.
Rather than stepping back, the trader escalated risk shortly after the wipeout, initiating new shorts on bitcoin and ether worth a combined $115 million on decentralized exchange GMX. Those positions remain open, currently showing $1.4 million in unrealized profits.
The trader’s behavior — characterized by large leverage, rapid re-entry, and emotional decision-making — has drawn comparisons to “James Wynn,” the pseudonymous trader who lost $100 million earlier this year after repeatedly longing bitcoin near cycle highs.
Bitcoin is trading around $94,100, having surrendered the majority of Sunday’s relief rally.
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