James Wynn, one of the most followed traders in the cryptocurrency market, experienced liquidation after shorting Bitcoin (BTC) on the Hyperliquid decentralized exchange. Blockchain analysis firm Arkham Intelligence confirmed the event.

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After the liquidation, Wynn's account had just over 900 dollars left, and the loss was based on HypurrScan data was 20 million dollars.

“In the last two weeks, he has been liquidated six times!,” blockchain analysis company Lookonchain added.

Wynn had warned traders over the weekend that market conditions would worsen before they improved. He presented his diversified defensive strategy, which included shorting both the S&P 500 and Nasdaq, a long position in WTI crude oil, and selective buying of BTC with spot capital during dips.

The trader's bear market strategy coincided with a time when geopolitical tensions around the Strait of Hormuz increased and the price of oil remained above $100 a barrel. However, the price of Bitcoin moved sharply against him.

BTC rose 3% in the last 24 hours. Earlier today, the cryptocurrency climbed to an intraday peak of over $70,000, the highest level in over a week. According to BeInCrypto Markets, at the time of writing, the price was $69,133.

BeInCrypto reported that the price rally was fueled by a short squeeze in the derivatives market, leading to the liquidation of approximately $196 million in short positions in the market. The total value of the cryptocurrency market recovered to $2.35 trillion on April 6, up from about $89 billion from a low of $2.27 trillion on April 5.

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