James Wynn’s big wins (and losses): The truth about trading with leverage

James Wynn, a prominent pseudonymous crypto trader, gained attention for his high-leverage strategies on memecoins like PEPE. Starting with a $7,000 investment in PEPE when its market cap was under $600,000, Wynn's bold early entry led to an estimated profit of $25 million as the token's value surged to around $10 billion. By 2025, he escalated his trading strategy using perpetual futures on platforms like Hyperliquid, magnifying his gains significantly. However, Wynn's fortunes reversed dramatically with the price of Bitcoin falling below $105,000, resulting in partial and full liquidations that cost him nearly $100 million. Emotional trading exacerbated his situation, as he often increased positions at high leverage instead of mitigating risk. Wynn's saga serves as a cautionary tale about the complexities of trading with leverage, highlighting the necessity of risk management, the risk of partial liquidations, and the importance of having a solid exit strategy in volatile markets.

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