Crypto whale James Wynn loses $4.8 million in just hours due to high leverage trading

The crypto whale known as James Wynn lost approximately $4.8 million in a single day after liquidating his high-leverage positions in the cryptocurrency market, according to data from Lookonchain.

Wynn had entered the market with only $197,000, during which he opened trading positions worth over $4.8 million, including a purchase with 40x leverage on Bitcoin, and another with 10x leverage on KingPepe, as stated on Hyperliquid. However, by the next day, nearly all of his positions were liquidated, and his net portfolio dropped to just $63,000.

Wynn is considered one of the most controversial traders in the crypto community, known for making massive profits and losses through high-leverage perpetual contracts, which allow for significant gains or losses in a short period.

He had lost over $100 million last May after the price of Bitcoin dropped, before returning again with a similar trade that also ended in complete liquidation, prompting him to temporarily step back from trading.