Crypto Crowd Stunned as Trader Piles Into 40x Bitcoin Long on Hyperliquid

This weekend, social platforms have been buzzing with chatter about a prominent figure trading on the decentralized derivatives exchange Hyperliquid.

Over the weekend, crypto social media was buzzing about a prominent Hyperliquid trader who is running an exceptionally high-leverage bitcoin position. The position, which is valued at approximately $392 million and executed with an aggressive 40x long, has stunned the crypto crowd.

The trader, who is ranked as the third-highest on the platform’s leaderboard and is linked to the name James Wynn by address attribution, maintains an X account with nearly 52,000 followers as of May 18. He has been actively engaging with the buzz surrounding his trade this weekend.

The trader is known for his bold and risky moves, and this trade is no exception. The 40x leveraged long position on BTC perpetual is currently valued at around $392 million, and it has a liquidation threshold of approximately $95,000 per bitcoin. This means that if the price of bitcoin falls below $95,000, the position will be liquidated, and the trader will lose a significant portion of his investment.

However, the trader is confident that the price of bitcoin will continue to rise. He believes that the crypto winter is over and a new bull market is beginning.

“This isn’t a play for 10% return over 3 months,” the trader wrote on X. “It’s a belief that a melt-up could be starting and we might see a rapid move to 115K, taking out 5 billion in shorts.”

The trader’s position is a risky one, but it could also be incredibly rewarding if the price of bitcoin continues to rise as expected. Only time will tell whether the trader will be able to hold his position and collect massive gains, or if he will be liquidated and forced to face staggering losses.

In other crypto news, a new report from Arcane Research has found that the percentage of bitcoin futures traders who are net short has hit a 15-month high.

According to the report, the percentage of traders who are short on bitcoin futures contracts on Deribit has risen to 63%, the highest level since December 2021.

The report also found that the total open interest in bitcoin futures contracts has risen to a record high of $10 billion.

The increasing levels of pessimism and short interest come as bitcoin's price hovers around the $104,000 mark, having rebounded from lows of around $90,000 seen earlier this year.

"The pessimism towards bitcoin has increased rapidly in recent weeks, with the percentage of Deribit traders who are net short hitting a 15-month high of 63% this week," Arcane Research noted in its report.

"The last time we saw pessimism at this level was during the covid market crash in early 2020, when traders sold put options and went massively short on futures."

The report further noted that the amount of put option premium sold in the last three months is "unbelievable."

"It is clear that traders are not anticipating any downside in the coming weeks and months, and they are positioning themselves accordingly," the report stated.

"This level of pessimism is usually seen during market bottoms, while optimism and leveraged long positions are seen at market tops."

The report concluded that the current market conditions are setting the stage for a "huge move" in either direction for bitcoin in the coming weeks.

"If bitcoin manages to close above $115,000, we might see a rapid liquidation of leveraged positions and a continuation of the bull market," the report said.

"On the other hand, if bitcoin falls below $95,000, we might see a large-scale unwinding of put option positions and a return to the bear market."output: Over the weekend, countless social media accounts buzzed with discussion about a prominent Hyperliquid whale, who’s currently holding an exceptionally high-leverage bitcoin (BTC) position.

The figure in question is ranked as the third-highest trader on the decentralized derivatives exchange’s leaderboard and is reportedly linked to the name James Wynn, according to the address attribution. If the attribution is true, Wynn maintains an X account boasting nearly 52,000 followers as of May 18, and he’s been actively engaging with the buzz surrounding his trade this weekend.

The fascination lies in the sheer scale of the trade: a bold 40x leverage position carrying a notional value near $392 million. That headline figure, of course, doesn’t reflect the capital outlay, which would be closer to $9.8 million given the leverage involved.

Data indicates the trader has deposited 49,920,064.26 USDC into his perpetuals balance on the exchange. As of Sunday afternoon, the liquidation threshold for the position hovers around $95,000