Hyperliquid Whale Exits After $25 Million Profit Despite $15 Million Loss on Final Short

Hyperliquid Whale Exits After $25 Million Profit Despite $15 Million Loss on Final Short

A major trader on Hyperliquid has captured the attention of the crypto market after closing a billion-dollar Bitcoin short, taking a significant hit of $15.87 million in just 15 hours. 

The trader, James Wynn, also known as “moonpig” on-chain and @JamesWynnReal on social media, then withdrew $28 million in USDC from the platform, concluding a 75-day trading spree with a total profit of $25.2 million. 

His reversal and subsequent exit have fuelled wider discussion about whale influence and volatility on decentralised trading platforms.

How James Wynn’s Bitcoin Trades Unfolded

James Wynn had recently closed a $1.2 billion Bitcoin long position with a $13 million loss, only to flip to a $1 billion short hours later using 40x cross-margin leverage. 

The entry point for the short was around $107,077, and liquidation would have occurred at $110,446 unless more collateral was added. Initially, the trade looked profitable, generating $3 million within hours. However, market conditions soon turned against him.

On Sunday evening, Wynn closed his short position after Bitcoin moved against his entry. This final short, held for only 15 hours, resulted in a $15.87 million loss. 

The abrupt turnaround followed his earlier long closure, which he had explained was driven by a golden cross appearing in technical charts. 

Though typically interpreted as a bullish signal, Wynn believed it would precede a temporary dip. He exited his long ahead of liquidation and positioned for a decline, only for Bitcoin to climb higher instead.

Wynn’s actions have become a point of reference in the market. His previous long was large enough that its closure reportedly triggered a 1.3% price decline. 

Analysts had viewed his moves as indicative of changing sentiment, and this final trade may signal an end to his recent period of high exposure.

Across 75 days, Wynn made 38 trades on Hyperliquid. Only 17 of those trades were profitable, giving him a 45% win rate. Despite the modest hit rate, his aggressive size and high leverage allowed him to walk away with $25.2 million in net profit. 

He also contributed over $2.3 million in trading fees to the Hyperliquid platform, one of the largest individual fee contributions recorded on-chain.

Following the closure of his short, Wynn withdrew $28 million in USDC, effectively signalling a temporary or possibly permanent exit from Hyperliquid. 

His departure came at a time when market attention on Hyperliquid was already elevated due to increased whale activity and rising open interest.

Whale Activity and Its Impact on Hyperliquid’s Market 

Wynn’s trades are not isolated cases but part of a growing pattern on Hyperliquid, where large wallets are making frequent high-volume bets on both majors and emerging tokens. 

His activity occurred during a period in which the decentralised exchange saw its native token, HYPE, climb more than 100% over two months. 

HYPE recently reached a new high, with much of the demand attributed to traders like Wynn and Machi Big Brother, who made substantial trades and staked large amounts of the token.

The trend has not gone unnoticed by analysts tracking on-chain data. The exchange whale ratio, as measured by CryptoQuant, reached 0.65 on Saturday, the highest level since July 2024. At that time, Bitcoin experienced a modest correction followed by a stronger pullback in August. 

The return of this ratio suggests that whales have been moving large quantities of Bitcoin onto exchanges, potentially for profit-taking or hedging.

This activity coincided with over $1 billion in Bitcoin outflows from spot wallets over the past three days. Despite these outflows, demand appears to have held steady, with outflows still exceeding inflows. 

This has led some to believe that while profit-taking is ongoing, the market is not yet facing widespread panic selling.

Meanwhile, derivative activity has been increasing. Data from CoinGlass shows that more than $180 million in positions were liquidated within 24 hours, with $138 million of that total from long positions. Ethereum, Bitcoin, and Solana all saw significant liquidations, leading to a shift in positioning across the board. 

Short positions now account for more than half of all open interest, marking a clear change in trader outlook.

The shift is also visible in the futures-to-spot volume ratio on Binance, which now stands at 4.9. This is the highest it has been in 18 months, suggesting that speculation via derivatives has overtaken spot trading as the dominant form of activity. 

With traders increasingly relying on leverage, the influence of a few large wallets has become more pronounced.

These developments raise important questions about market stability. Hyperliquid’s design, which supports high leverage and public trade visibility, means that large wallet movements are not only impactful but also widely copied. 

When traders such as Wynn make visible changes in strategy, it can lead to cascades of similar positioning by others.

In the case of Wynn’s most recent trades, the $15.87 million loss on the short position serves as a reminder that even experienced traders can be caught out by volatility. 

His decision to withdraw immediately after closing the position suggests that he may be waiting for clearer signals before re-entering.

Conclusion

James Wynn’s trading activity on Hyperliquid, culminating in a $15.87 million loss on a billion-dollar short and a final withdrawal of $28 million in USDC, reflects both the risks and rewards of high-leverage trading. 

Despite a mixed win rate, his overall profit of $25.2 million demonstrates how large size and timing can outweigh consistency. 

His exit comes at a time when market sentiment remains divided, with whale behaviour and rising derivatives volume shaping the next phase of Bitcoin’s movement. 

For now, Wynn’s departure may mark a pause in aggressive speculative action, but his influence will likely be felt well beyond his final trade.