High-Stakes Gambler Liquidated for $168M After Shorting the Bottom of Crypto Plunge

Why It Matters

The liquidation illustrates how extreme leverage can rapidly erase multi‑million‑dollar positions, raising concerns about systemic risk and potential regulatory scrutiny of crypto derivatives platforms. It also serves as a cautionary tale for traders about the volatility and impulsivity inherent in decentralized finance markets.

Summary

A high‑stakes crypto gambler was liquidated on HyperLiquid after a $168 million leveraged short‑bet on Bitcoin, XRP, ZEC and other assets, wiping out $5.5 million as prices bottomed. Undeterred, the trader immediately opened additional short positions worth $115 million on the GMX decentralized exchange, which remain open with about $1.4 million in unrealized gains. The episode echoes the earlier $100 million loss of pseudonymous trader James Wynn, underscoring the perils of ultra‑high leverage in volatile markets. Bitcoin is now trading near $94,100 after recouping most of Sunday’s rally gains.