From a loss of 100 million to a floating profit of 150,000, the "bankrupt whale" James Wynn has started reducing his positions.

Well-known trader James Wynn once again becomes the focus on the blockchain. This time not because of a liquidation, but due to profit-taking. According to the latest news, on January 7th, he simultaneously reduced his long positions in BTC and PEPE. His BTC long was decreased to 87.66 coins (approximately $8.11 million), with an unrealized profit of $32,000; his PEPE long was reduced to 263,852,157 coins (about $1.72 million), with an unrealized profit of $118,000. The total unrealized profit across both positions is $150,000.

This number may not seem large, but the story behind it is quite dramatic.

From Liquidation to Turnaround: The “Redemption” Journey

James Wynn’s name carries special significance in the crypto world. Six months ago, he lost over $100 million on Hyperliquid, earning the notorious title of “Bankrupt Whale.” But recent events have rewritten this story.

According to on-chain monitoring data, since the beginning of this month, James Wynn started rolling over his position in PEPE with about $20,000 of capital, then added a BTC long. In just a few days, his account value surged from $20,000 to $600,000, reaching a peak of $910,000, with a profit multiple of 90x. This was not only a successful trade but also a psychological redemption.

His success hinged on two key factors: PEPE’s strong rally and BTC’s stable trend. According to reports, BTC has increased by 4.45% over the past 7 days, with the current price at $92,546.67, accounting for 58.24% of the market cap. As a high-volatility meme coin, PEPE offers greater profit potential.

The Logic Behind Reducing Positions

But why reduce positions at this time? That’s worth pondering.

From a position structure perspective, his reduction was not a complete liquidation but a partial one. This indicates he still has confidence in the future market but is also managing risk. This is a sign of a mature trader—no longer an “all-in” gambler, but someone who takes profits with rhythm.

Specifically:

Interestingly, he made less profit on BTC (only $32,000), but gained significantly on PEPE ($118,000). This reflects a more precise grasp of PEPE, while BTC might be just a strategic holding.

On January 1st, he publicly predicted that PEPE’s market cap would surpass $69 billion by 2026, from about $2.8 billion at the time. If this prediction comes true, it implies a 24x upside. Given his optimism about the future, why still reduce positions? The most reasonable explanation is that he is cashing out part of his gains while keeping core holdings to participate in subsequent market movements.

Risk Signals or Normal Adjustment?

It’s important to note that although James Wynn is reducing positions, he still maintains a 40x leverage on BTC and 10x on PEPE. This means his positions remain highly sensitive to price fluctuations. According to data, his BTC liquidation price is around $89,600, and PEPE’s is approximately $0.0057.

A short-term decline of over 2% in BTC or a sharp drop in PEPE could trigger liquidations. Such high-risk operations have limited relevance for ordinary investors.

From market sentiment, whale reductions often signal two possibilities: one, they believe the short-term rally has reached its peak and want to lock in profits; two, they have concerns about the future. But given Wynn’s retention of core positions, the former is more likely.

Summary

James Wynn’s recent position reduction is an interesting signal. From “bankrupt whale” to profit turnaround and then to rational profit-taking, he has demonstrated the growth expected of a seasoned trader—no longer blindly gambling, but trading with confidence in trends while managing risks.

He shows the market through action: he was right about PEPE’s rally, recognizes BTC’s stability, but will not repeat past mistakes. For ordinary investors, the more important lesson isn’t copying his trades but learning from his mindset shift—being willing to reduce positions after profits, remaining optimistic about the future while leaving room for flexibility. The market rewards those who have conviction and understand risk management.