- James Wynn’s $65M liquidation triggered panic-selling, crashing BTC below $103K and wiping out major kPEPE positions in hours.
- Wynn’s 40x BTC and 10x kPEPE exposure backfired, pushing his net PnL to -$17.76M and sparking ETF outflows and market-wide deleveraging.
- Technicals show dominant shorts and steep RSI losses, with Wynn’s open longs now near forced closure as margin nears full utilization.
Massive liquidations by James Wynn have shaken crypto markets, with over $65 million in assets forcibly sold within hours. According to Lookonchain, during a sharp downturn, Wynn lost 520 BTC worth $54 million and 982.5 million kPEPE valued at $11.6 million.
In the post by Lookonchain, Wynn’s remaining open positions still include 137.9 BTC worth $14.26 million and 260.73 million kPEPE valued at $2.9 million. His net PnL is -$17.76 million, underscoring severe capital destruction. The BTC-USD pair on Hyperliquid showed a sharp drop to $103,367, with realized liquidation labels highlighting forced closures tied to large trades.
The sell-off began around the $105,000 level on May 30 and rapidly accelerated. At 17:45 UTC, a sharp red candlestick and a volume spike confirmed a plunge to below $103,200. Multiple trades followed, including a BTC liquidation of 34.47 BTC at $103,223 and a simultaneous kPEPE dump of 65.18 million tokens at $0.01105, totaling over $4.2 million in value.
ALVA Flags Liquidity Crunch as Open Interest and ETF Flows Reverse
Wynn’s losses catalyzed broader market instability, driving a chain reaction in both derivatives and spot markets. According to a reply by ALVA, the massive liquidations “hammered his PNL and became a lightning rod for market fear,” prompting ETF outflows and open interest to retreat amid a rush to deleverage.
ETF data registered accelerated outflows following the liquidations, signaling investor rotation away from high-leverage altcoin plays. With BTC exposure at 40x and kPEPE at 10x, Wynn’s wallet reflected extreme directional bias and no hedging, heightening pressure as funding rates turned negative.
Open interest sat at $2.29 billion, with the 24-hour BTC volume at $4.77 billion, emphasizing aggressive position turnover. Margin usage climbed to 146.47%, while total position value surged to $17.16 million, leaving zero withdrawal balance. Unrealized losses now exceed $752,000, with return on equity plunging to -116.38%.
Technical Breakdown Confirms Bearish Control, Leverage Risks Rise
Technical indicators reinforce the bearish structure as downside momentum intensifies. MACD completed a bearish crossover, and RSI slipped deep into oversold territory, suggesting sellers are firmly in control. However, ALVA noted that “a short squeeze can’t be ruled out if positioning gets too one-sided.”
The trading chart shows dominant short entries marked by red “S” symbols concentrated below the $104,000 mark. Brief bullish attempts, green “B” indicators, appear near $103,400, showing limited recovery. Major liquidation events, including one at $103,822 involving 67.33 BTC, highlight systematic pressure.
BTC’s current trade at $103,458 versus an entry price of $105,554 reflects an 82.16% drawdown, with liquidation set at $102,562. Meanwhile, kPEPE dropped from $0.0129 to $0.0111, pushing a 158.45% drawdown and risking a wipeout at $0.0106. Both positions are still open, fully long, and fully exposed.
