Bitcoin Rebound Sparks Turmoil as High-Risk Trader Wynn Doubles Down on Massive Shorts

Bitcoin’s sharp rebound, fueled by optimism over the end of the 40-day U.S. government shutdown, has split traders. While most market watchers welcomed the recovery, aggressive short sellers faced a costly squeeze. High-risk trader James Wynn is at the center of the turmoil after a series of rapid losses pushed him into an even larger short bet.

Heavy Liquidations Fail to Stop New 40x BTC Short Position

Wynn went “all in” on shorting Bitcoin despite being liquidated 12 times within 12 hours as prices moved against him. Hyperdash data shows his main Hyperliquid account fell to about $5,422 after repeated liquidations over the past day. His losses stretch over two months, totaling 45 liquidations, according to on-chain data.

The strong price recovery caught Wynn off guard, as he had been running multiple high-leverage Bitcoin shorts while expecting a deeper pullback. Prices instead climbed on optimism that the U.S. government shutdown would soon end, shaking out traders who had positioned themselves for a downward move.

Wynn doubled down rather than stepping back, noting that he had moved all his stablecoin holdings into additional short positions, targeting a drop below $92,000. In a post on X, he stated he was “as all-in as I can get” and accepted that he would either make “hundreds of millions” or go “bust.”

At the time of reporting, his main account held a 40-times-leveraged short position worth $275,000. Liquidation would occur if Bitcoin climbed above $106,856. Wynn entered the trade when Bitcoin was below $101,800 and was sitting on an unrealized loss of $11,147 by late Monday morning.

Wynn Ramps Up Aggressive Bitcoin Shorts Despite Mounting Losses

Market data shows that some experienced traders are also bracing for further declines. Nansen reported that “smart money” wallets carried a net perpetual short position of $223 million on Hyperliquid, with $5.2 million in fresh shorts added in the past 24 hours.

Some traders are closely tracking Wynn’s moves because his trading patterns often reflect aggressive shifts in market sentiment.

His actions right now center on:

• Taking repeated high-multiple short positions despite earlier losses.
• Allocating all remaining stablecoins into new shorts.
• Targeting a sharp drop below $92,000.
• Accepting the risk of a complete wipeout.
• Drawing broader trader attention due to his history and scale.

Wynn is no stranger to high-risk trading and has a record of extreme bets. In June, he placed a new $100 million Bitcoin short not long after losing nearly the same amount in late May. He also faced a $25 million partial liquidation shortly afterwards.

Market watchers now see Wynn’s renewed “all-in” stance as a high-risk gamble at a volatile moment . Bitcoin’s rebound has created tension between those betting on renewed strength and those expecting a deeper correction. Wynn remains firmly in the latter camp, even as losses mount.