Overleveraged traders were totally unprepared for the cryptocurrency market’s comeback, and none more so than James Wynn, who has once again come to represent the extreme volatility of the industry. After weeks of unrelenting losses, Wynn was liquidated 12 times in the last 12 hours alone, wiping out what little recovery remained in his account.
Top trader liquidated
Trade data shows that as Bitcoin surged above $106,000, short orders were crushed, and Wynn’s positions were methodically liquidated across Bitcoin pairs. The series of forced closures started late last night, and each position’s liquidation value increased to the hundreds of thousands. Wynn made a fatal error for a trader already reeling from 45 liquidations in the previous two months, when he doubled down and refused to reduce his exposure despite a clear reversal on the charts.
BTC/USDT Chart by TradingViewStrangely, only a few days prior, Wynn had finally made a rare successful trade. However, he aggressively increased his position and bet on another significant downside leg rather than taking profits and resetting. The liquidation cascade started almost instantly when Bitcoin started to rise again, with each increase leading to another margin call. According to reports, Wynn’s trading account has decreased from tens of thousands earlier this quarter to just $6,010.
His situation is representative of a larger pattern of high-leverage traders losing everything during the recent recovery. As Bitcoin reversed from its local lows around $101,000, exchange data reveals an increase in liquidation volume across derivatives platforms, with short positions being forced to close. Technically speaking, Bitcoin’s surge above important moving averages has increased hope for a brief comeback, but for traders like Wynn, it is the best example of a famous rule: leverage cuts both ways.
This might not be the final crypto bloodbath, particularly for those who are still attempting to short into strength without taking note of the previous liquidation wave given the tightening of liquidity and the resumption of volatility.
Source: https://u.today/12-liquidations-in-12-hours-crypto-bloodbath-among-crypto-whales
