Bitcoin Rally Triggers Massive Liquidations, But One Trader Still Bets It’s Not Over

Liquidations Pile Up Amid Market Whiplash

Across major derivatives platforms, liquidation bots were busy through the night as Bitcoin’s climb past $105,000 forced heavily leveraged traders to exit en masse. Among them was high-profile on-chain speculator James Wynn, a frequent participant on Hyperliquid, whose trading account has become something of a cautionary tale for extreme leverage.

Blockchain tracking platforms Hyperdash and Lookonchain recorded multiple liquidation events tied to Wynn’s main wallet within the past 24 hours. The account’s value reportedly fell below $5,500, reflecting dozens of forced position closures as Bitcoin continued its climb.

Data shows Wynn was liquidated 12 times in just half a day, extending a two-month streak of losses that has seen him suffer 45 liquidations overall. Before the rebound, he had amassed a large series of short positions on Bitcoin — leveraged bets that the world’s largest cryptocurrency would keep falling.

Instead, a surge in optimism over the possible end of the U.S. government shutdown fueled a rally that caught short sellers off guard. Within hours, Bitcoin broke above $106,000, and the liquidation cascade began.

A Trader Refuses to Surrender

Despite the setback, Wynn hasn’t abandoned his bearish stance. In a defiant post on X, he declared he was “all-in” once again, doubling down on his conviction that Bitcoin’s recovery is temporary.

“I’ve deployed everything I’ve got into shorts,” he wrote. “Either this turns into hundreds of millions — or I go bust.”

Wynn’s latest move reportedly involves a 40x leveraged position valued at around $275,000, opened when Bitcoin traded near $101,800. According to Hyperdash data, that position risks liquidation if the price pushes much higher — a dangerous threshold given the market’s momentum.

Sentiment Remains Divided Among “Smart Money”

Wynn isn’t the only one wagering against the rally. Data from Nansen indicates that many high-performing “smart money” wallets on Hyperliquid are also holding net short exposure to Bitcoin. As of Monday, cumulative short positions totaled $223 million, with over $5 million in new bearish contracts opened within 24 hours.

Analysts say this positioning reflects a deeper split in sentiment. While retail traders see the shutdown’s resolution and ETF speculation as bullish catalysts, institutional participants remain cautious — believing that liquidity-driven rallies can fade quickly in overbought conditions.