Hyperliquid Bitcoin Bull Turns Bear; James Wynn Opens $111 Million BTC Short

High-risk cryptocurrency trader James Wynn is making a U-turn with his Bitcoin gamble. After closing his $1.2B BTC long position, the Hyperliquid trader has opened a new $111 million Bitcoin short with a liquidation price at $149,100.

James Wynn Bets Against A Bitcoin Rally With $111 Million Short

James Wynn has rocked the ecosystem with a $111.8 million short position on 1,038 BTC hours after closing his previous long position. According to an X post by Whale Insider, the Hyperliquid high-risk trader faces liquidation at $149,1000 with a 40X leverage.

The perpetual futures trade follows the closing of a $1.2 billion Bitcoin long position over the weekend. James Wynn faced liquidation at $105K, with experts like CrediBULL Crypto betting against the high-risk trader.

Barely 24 hours ago, James Wynn predicted Bitcoin price to climb as high as $121,000, setting a new all-time high this week. However, the new short position signals a changing stance by James Wynn, with the cryptoverse keen on wrapping their head around the move.

James Wynn’s aggressive bet indicates belief in a near-term Bitcoin correction after an impressive run. At the moment, Bitcoin is trading at just under the $107K mark, down by 4.5% since setting its all-time high.

The steady decline could result in steep profits for James Wynn, but the threat of a short squeeze hangs uneasily over the short position.

Why Is The Hyperliquid Trader Betting Against BTC?

James Wynn is hinging his bet against Bitcoin on technicals, hinting at a short-term price decline for the largest cryptocurrency. He argues on X that there is a significant pile-up of downward pressure for Bitcoin, and a breakout above $108K is unlikely.

“From a TA standpoint, convince me we are going higher in the short term i.e within 24-48 hours,” wrote James Wynn on X. “Post your charts and good reasoning for me to try and counter your thesis.”

The trader notes that low trading volumes, an undersold 4-hour chart, and an underwhelming 50-day moving average point to a near-term correction.

On the fundamentals side of things, an unsavoury macroeconomic report is dousing Wynn’s previous enthusiasm. Bitcoin price tumbled by 4% after Trump’s 50% tariff news, as traders lost nearly $700 million in leveraged positions.

Furthermore, there is fear that Bitcoin is overbought at the $107K zone since BTC set a new ATH. However, speculation is growing that the crypto trader’s short position is an attempt to shake out longs and re-enter at lower prices.