A high-risk crypto trader suffered a massive wipeout on HyperLiquid over the weekend—only to immediately re-enter the market with another round of oversized leveraged shorts on GMX, repeating a pattern seen in previous speculative blow-ups.
The trader, known for repeatedly depositing hundreds of thousands of dollars into crypto gambling platforms like Stake and Roobet, was liquidated on $168 million worth of short positions after betting against the market just before Sunday’s rebound. The wipeout resulted in a $5.5 million realized loss.
Their HyperLiquid portfolio included aggressive shorts on bitcoin (BTC$84,716.87), XRP (XRP$1.9485), and zcash (ZEC$608.15), alongside smaller bearish positions in ASTER, BNB and RESOLV. The timing was particularly poor, coming immediately after multiple assets fell to multimonth lows and sentiment indicators flipped to “extreme fear.”
Despite the loss, the trader quickly escalated their risk. Within hours of liquidation, they reopened massive short positions — this time on decentralized exchange GMX — with $115 million in combined exposure to bitcoin and ether. Those GMX positions remain active, currently showing an unrealized profit of roughly $1.4 million.
The episode echoes the reckless trading behavior of pseudonymous speculator James Wynn, who earlier this year lost $100 million after piling into heavy bitcoin longs at market highs.
Bitcoin is trading around $94,100 at press time, giving back most of the gains from Sunday’s brief relief rally.
