- High-stakes crypto trader James Wynn lost over $25M in leveraged Bitcoin trades.
- His downfall from a ~$100M peak, called “The Matrix attack,” was tracked on-chain.
- Wynn cited Hyperliquid’s funding costs; another trader made $5.6M betting against him.
James Wynn, a high-stakes crypto trader who had previously seen his portfolio reportedly skyrocket from around $4 million to a peak valuation near $100 million, has now been effectively wiped out. In a dramatic series of highly leveraged Bitcoin trades, Wynn suffered losses exceeding $25 million.
This rapid downfall, tracked live on-chain by the crypto community, is being dubbed “The Matrix attack,” marking one of the most brutal public collapses seen in the space.
From High Roller to Deep Red in Days
Wynn’s initial rise was nothing short of dramatic, as he quickly made a name for himself by flipping high-leverage perpetual contracts on the decentralized exchange Hyperliquid.
On May 21, he launched a jaw-dropping $830 million long on Bitcoin, adding another $1.1 billion soon after. At one point, his unrealized profits hovered near $40 million. But the market sentiment then shifted with brutal efficiency. Following a surprise U.S. tariff announcement, Bitcoin’s price took a sharp dip.
For Wynn, this wasn’t just a minor reversal; the market effectively collapsed under his heavily leveraged positions. His massive longs came dangerously close to liquidation. An attempt to hedge his exposure with an $856 million short position ultimately backfired, instead locking in a realized loss of $15.5 million on that particular move.
Fast Trades, Faster Losses
May 24 marked Wynn’s last profitable day in this cycle, where he reportedly secured $18.4 million from a tactical trade. However, the same day, he exited a $1.25 billion Hyperliquid long with a $13.4 million hit, despite paper profits showing $40 million earlier.
Things further worsened when Bitcoin fell to $107,431 within striking distance of Wynn’s $104,000 liquidation price. At that point, he announced his exit, having lost $17.5 million overall.
Related: James Wynn’s Crypto Gamble: Will His Risky Moves Lead to a Massive Downfall?
In explaining the rapid decline, Wynn described the last few hours as “surreal” and specifically pointed to Hyperliquid’s funding costs as a key factor that was “draining his capital by the second.” The initial report of over $25 million in losses likely reflects the total swing from his peak unrealized profit to his final realized position.
While some members of the crypto community have acknowledged Wynn’s transparency in detailing his losses, others have criticized his high-leverage return to trading as reckless.
Related: James Wynn Faces Accusations of Profiting From Meme Coin Scams
Adding another angle to the saga, on 27 May, a different trader, identified as wallet 0x2258, made $5.6 million in just three days. Their strategy was simply to take positions betting against James Wynn’s publicly known trades.
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