Whale James Wynn goes long on Bitcoin "losing 84 million dollars", is a 40x leverage worth it?

James Wynn's five-day profit on his bitcoin position plummeted from $87 million to $3 million, highlighting the alarming risks and extreme volatility of the crypto market's high leverage. (Synopsis: Anti-James Wynn Strategy!) Writing wheel eye trader made 5.6 million US dollars in 3 days) (Background supplement: The whale lost miserably" James Wynn closed a short 1 billion US dollar Bitcoin order, losing 15.86 million magnesium) According to the monitoring of the well-known on-chain data analyst "Ember", James Wynn, a well-known God of War trader with high leverage, evaporated from $87 million (about NT$2.8 billion) to only $3 million (about NT$96 million) in just five days. This is equivalent to a floating loss of up to $84 million (about NT$2.7 billion), and although it is only an isolated case, James Wynn's recent actions are considered to be a perfect interpretation of the market's change in sentiment towards the bitcoin market. James Wynn is well known in the cryptocurrency circles for his aggressive style of highly leveraged operations, and according to on-chain analyst Ember monitoring data, as of the current record, Wynn holds a 40x leveraged long position of about 4,792 BTC, worth about $520 million. The position was opened at around $109,782, while the liquidation price was around $107,419, which can be said to be very close. Most eye-popping was the change in its book profit, which plummeted from about $87 million to about $3 million in just about five days. This huge floating loss was caused by James Wynn's frequent high-leverage large transactions during this period, which suffered losses in market fluctuations. Wynn Trading Style: 40x Leverage James Wynn's trading strategy is very distinctive, and his operating style is very aggressive, especially preferring to use up to 40x leverage on Bitcoin. His positions are also often very large, such as reports that he has held a long position in 40x leveraged Bitcoin worth nearly $1.2 billion (although there are rumors of up to $7.9 billion, a more accurate figure may be $790 million, involving thousands of BTC). In addition to Bitcoin, Wynn is also actively involved in the highly leveraged trading of meme coins, for example, he has made tens of millions of dollars by trading PEPE coins with high leverage, which also reflects his preference for high-risk assets. His main trading platform is focused on Hyperliquid. This extremely highly leveraged mode of operation is inherently risky, and 40x leverage means that a small movement in the price of Bitcoin (just 1-2%) can quickly touch the liquidation price or trigger a stop loss. Since the liquidation price is set very close to the opening price, once the market fluctuates unfavorably in the direction of its position, it is very easy to lead to forced liquidation. In addition, Wynn's frequent trading activity also generates high fees and funding fees, hidden costs that continue to erode its profits and even exacerbate losses when it loses. Squeeze the multi-order butterfly effect Large traders with huge positions like Wynn can have a significant impact on the market by their trading activity, because sometimes even other traders are attracted to adopt the "reverse Wynn" strategy, intending to make counterparties with them, profiting from liquidation, resulting in a squeeze effect, further increasing the size of the trade flat, which in turn further exacerbates market volatility. However, actions such as James Wynn are actually considered to be important market signals, prompting trading enthusiasm, promoting market discussions, traders and re-evaluating their strategies and risk exposure, so Wynn as a capital market case, in fact, may be an extreme catalyst to increase market efficiency, but in fact adopt a 40x leverage strategy, not suitable for most traders, the dynamic area reminds readers that risk management is the primary focus, cautious response to sharp changes in the market, The recent large-scale long profit taking may become a short-term decline, if there are already losing positions, you should go out in time to avoid concave orders, so as not to cause more losses. Related stories Non-farm employment is too strong! Fed sounding tube: The opportunity to cut interest rates in June is greatly reduced, Goldman Sachs and Barclays changed their words "to wait for July" US think tank spouted Trump Ball: Fed interest rate cut is too much, "inflation is about to explode", economics has completely failed Tariff storm to CPI unexpected decline, speculate whether the Fed rate cut can detonate the global asset carnival? 〈James Wynn, the whale, long bitcoin "lost $84 million", is it worth fighting 40 times leverage? This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".