Bitcoin’s Price Surge to $110,000 Erases $1 Billion in Short Positions on Hyperliquid

Bitcoin experienced a slight increase in early Asian trading, climbing by 3% to reach a peak of $110,256 before stabilizing around $109,652, according to market data. This rise came after a decline over the weekend from previous all-time highs.

Market experts believe that Bitcoin’s price momentum remains strong due to positive regulatory news and consistent involvement from institutional investors.

Valentin Fournier, a leading analyst at Blockhead, noted that the market’s recovery is largely influenced by institutional and corporate investments. He cautioned that without their support, temporary price surges might quickly lose traction.

While the overall market demonstrates resilience, the rebound has also sparked notable liquidation events.

A prominent trader on the decentralized exchange Hyperliquid was compelled to liquidate a short position valued at $1 billion, highlighting the risks associated with high leverage in a volatile market.

### High-stakes Bitcoin investment on Hyperliquid

During the weekend, cryptocurrency trader James Wynn drew attention by placing two sequential billion-dollar wagers on Bitcoin.

On May 24, he initiated a long position of approximately $1.25 billion, employing 40x leverage with the anticipation that Bitcoin’s price would rise between $118,000 and $121,000.

However, that optimistic position was short-lived. He closed the trade with a loss of $13 million and swiftly transitioned to a bearish short position of the same magnitude within a day.

Yet, the bounce in Bitcoin’s price left this short position at a loss as well, resulting in an additional $15.87 million loss in just 15 hours.

Despite these consecutive setbacks, Wynn remains in a profitable position overall.

According to a blockchain analytics firm, the trader withdrew $28 million in USDC from Hyperliquid, ending the weekend with a net profit of $25.2 million.

In the last 75 days, he has executed 38 trades on the platform, achieving success in 17 of them, while also contributing $2.31 million in trading fees.

Currently, Wynn has re-engaged in trading, having reopened a long position with 40x leverage worth $75.34 million (684 BTC), which has a liquidation price set at $103,120.

He also initiated a $20 million long position on the memecoin PEPE using 10x leverage, which presently indicates an unrealized gain of approximately $434,867.