James Wynn opens a 40x short position worth 1 billion USD right after closing a 1.2 billion USD long position with a 17.5 million USD loss on Hyperliquid.
A trader on the Hyperliquid Derivative platform just established one of the largest on-chain short positions in history, betting nearly 50 million USD as collateral to open a 1 billion USD short position on Bitcoin with 40x leverage. This trade was executed just a few hours after the trader with the nickname James Wynn (or "moonpig") closed a long position of equivalent size, demonstrating a sudden and fierce change in market perspective.
Wynn opened a cross-margin short position with 40x leverage, meaning his entire wallet worth nearly 50 million USD is at liquidation risk. This trade occurred immediately after Wynn closed a 1.2 billion USD Bitcoin long position, resulting in a cumulative loss of approximately 17.5 million USD according to CoinGlass data. Wynn previously predicted BTC would reach 110,000 USD on Saturday, but the price only slightly increased from around 107,300 USD to 108,000 USD, forcing him to change strategy.
At present, the short position is temporarily profitable by about 3 million USD with an average entry price of 107,077 USD. However, if BTC rises to 110,446 USD and Wynn does not add additional collateral, the position will be fully liquidated. Despite recently recording a significant loss, Wynn's total historical profit on Hyperliquid still exceeds 40 million USD, indicating the trader's extensive trading experience.
Record open interest and HYPE token breakthrough
Along with Wynn's trade and increasing interest in Derivatives, open interest on Hyperliquid has reached a record high. The platform's HYPE token has increased over 8% in the past 24 hours, currently trading around 37.28 USD, approaching a new all-time high of 38.68 USD recorded on Saturday.
This massive trade not only attracts the crypto community's attention but also reflects the maturity of decentralized Derivative platforms like Hyperliquid. The ability of a trader to open a billion-dollar position with stable liquidity demonstrates DeFi's potential to compete with traditional centralized exchanges, while also raising questions about risk management when extremely large positions can significantly impact the market.
