A high-risk crypto trader suffered a devastating liquidation on HyperLiquid over the weekend, only to immediately re-enter the market with even larger leveraged shorts — mirroring past episodes of reckless speculation that ended in massive losses.
The trader, known for depositing hundreds of thousands of dollars into online crypto casinos like Stake and Roobet, was wiped out after shorting into Sunday’s rebound. Their leveraged positions — totaling $168 million across bitcoin (BTC$84,716.87), XRP (XRP$1.9485), and zcash (ZEC$608.15), in addition to smaller bets on ASTER, BNB and RESOLV — were liquidated, resulting in a $5.5 million loss.
The aggressive shorting spree came as major crypto assets dropped to multi-month lows on Friday, alongside the market’s fear and greed index swinging into “extreme fear.”
Rather than stepping back, the trader escalated their risk-taking. Shortly after being liquidated, they opened new shorts on bitcoin and ether worth $115 million on GMX, a decentralized exchange. Those positions remain open, with unrealized gains of roughly $1.4 million at the time of writing.
The pattern of extreme leverage and emotional trading recalls the infamous case of pseudonymous trader James Wynn, who earlier this year lost $100 million after repeatedly opening oversized long positions near bitcoin’s peak.
Bitcoin is currently trading at $94,100, erasing most of the gains from Sunday’s rally
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