James Wynn, a prominent crypto whale, experienced a dramatic $87 million loss in his Bitcoin portfolio over just five days. Initially holding a highly leveraged long position on Bitcoin worth up to $1.25 billion with 40x leverage, Wynn saw unrealized profits peak at $87 million when BTC prices rallied above $110,000. However, following a market retracement triggered by geopolitical tensions, notably Donald Trump’s threat to impose tariffs on the European Union, Wynn’s portfolio suffered a sharp drawdown. He subsequently switched to a bearish stance, opening large short positions, closing all contracts with around $25 million in profits.
Wynn is also known for his significant positions in the memecoin PEPE, having purchased trillions of tokens. He recently sold a large portion of his PEPE holdings to fund his BTC trades and deposited remaining tokens into Binance, prompting speculation about potential cash-outs.
The volatile swings in Wynn’s portfolio underscore the high-risk nature of leveraged crypto trading and have sparked investor anxiety about market stability. Some traders capitalized by betting against Wynn’s trades, profiting millions. The episode also highlights the critical importance of risk management strategies in the crypto market.