Arthur Hayes Questions $HYPE Whale’s Next Move After $23M Short Liquidation

• Arthur Hayes highlights $HYPE’s shakeout after a $23M short seller liquidation.
• James Wynn holds a $1.1B Bitcoin long with 40x leverage on Hyperliquid exchange.
• $HYPE’s price surge triggered liquidations, but strong momentum keeps bulls intact.

Arthur Hayes ignited discussion on May 24 when he tweeted about a $HYPE “cleanse.” The statement came after dramatic price increases for the token that began on May 23, when the value climbed as high as $37.24. As a result of the spike, several short positions were liquidated, and one position was said to have lost $23 million. Hayes’ remarks hinted that a large bullish trader might face liquidation, sparking speculation about future volatility.

Hayes mentioned a “degen bull whale,” which probably refers to James Wynn, a pseudonymous trader who often takes high-risk strategies. The question arose about whether Wynn could be under pressure to adjust his exposure because of recent market turbulence. While there is a lot of volatility, $HYPE has maintained strong momentum, and Wynn has not liquidated his positions.

The tweet was made after $HYPE’s success led to discussions about whether its rise could be maintained. Hayes mentions “cleanse,” referencing the elimination of bearish bets, the community debates whether this rally marks the start of further upside or sets the stage for a correction.

Wynn’s $1.1 Billion Bitcoin Position Draws Market Attention

James Wynn , known by wallet address 0x507, has placed significant bets on both memecoins and major tokens. His latest trade involves a $1.1 billion long position on Bitcoin perpetuals via the decentralized exchange Hyperliquid. Entered at around $109,000 per BTC, the position uses 40x leverage and was built from an initial margin of $400,000.

Wynn increased his stake on May 21, pushing his position up while Bitcoin broke past $109,000. He took partial profits along the way, reducing exposure by hundreds of millions before rebuilding. Before turning into a loss, the trade had recorded possible profits of nearly $39 million. He has a net profit of around $14 million and a liquidation level near $95,805.

Related: James Wynn’s Crypto Gamble: Will His Risky Moves Lead to a Massive Downfall?

Analysts and traders continue to monitor his trades. His several partial sales were made before the market fell, leading some to speculate on whether his actions contribute to short-term volatility. Still, Wynn remains confident, as he usually adds more trades after a retracement.

Trader’s History Signals High Risk, High Reward Pattern

Wynn’s success came from making highly profitable trades of memecoins such as PEPE and Official Trump tokens. He once took an investment of only $8,524 from an early PEPE investment, which grew to more than $44 million. His strategy tends to join the market early, leveraging heavily and exiting partially after price spikes.

He has recently focused more attention on newer tokens, including Moonpig (MOONPIG), which climbed 120% while he held a major stake. His bold trading strategies on platforms like Hyperliquid have made him a well-known figure in the crypto trading scene.