James Wynn’s $1.26B Bitcoin long at 40x leverage risks liquidation if BTC hits $105,179, this is the kind of setup that has historically preceded flash crashes.

by

James Wynn’s $1.26 billion Bitcoin long position with 40x leverage bets on price increase, using $31.6M margin to control 11,588 BTC. At Bitcoin’s current price of $109,029, it’s profitable, but a drop to $105,179 risks liquidation, losing the entire margin. High leverage amplifies gains and losses, making it risky given Bitcoin’s volatility. Historical crashes, like May 2021, show billions in liquidations. Closing this position could impact market stability, potentially causing price drops or triggering further liquidations. While profitable now, the strategy’s high risk requires caution. – Grok