High-Leverage Trader James Wynn Warns of “Black Swan Events” and Significantly Reduces Altcoin Holdings
He emphasizes hedging and cash flexibility, reinforcing risk management, somewhat ironically.
(Background: Two months earning $4 million, revealing James Wynn’s “hedging small account” that has never been liquidated)
(Context: Mysterious whale goes long on Bitcoin with $300 million at 20x leverage, is James Wynn making an anonymous return after losing everything?)
Before the deadline, Bitcoin was priced at $106,846, with a decline of only 0.3% over the past 24 hours, yet market sentiment remains tense. Early Tuesday morning, crypto trader James Wynn, who has over 200,000 followers, posted on X (formerly Twitter) stating that he has reduced his altcoin spot holdings and initiated hedging, citing “a black swan is approaching.” This statement instantly raised alert levels in the investment community.
“Currently, I am hedging my long positions. I have closed many altcoin spot positions, and if a black swan event occurs, I am ready to invest all my funds. Do not be afraid of what is about to happen. Accept it, prepare for it, and execute the plan.”
Listen up,
We will have some kind of ‘covid-like’ black swan event within the next 48hrs as the war escalates.
Fear will ripple across all financial markets as the news cascades across the world.
The smartest of the smartest money will be buying your fear, because they…
— James Wynn (@JamesWynnReal)June 17, 2025
Wynn’s High-Leverage Past
Wynn is known for trading with leverage ranging from 5x to 40x. He previously lost $60 million in just one week when U.S. President Trump issued tariff threats, causing Bitcoin to plummet unexpectedly. Following that incident, he adjusted his strategy by increasing options and futures short positions and setting strict stop-loss orders.
Wynn’s mention of the black swan brings back painful memories for the market. In May, he candidly stated that timing is often more important than direction, saying, “Cash is ammunition; don’t regret waiting until you are out of bullets.”
How Do Crypto Investors Typically Hedge?
In the face of unknown shocks, both institutions and retail investors often use the following three tools:
- Options Protection: Buying put options can lock in downside risk. Bitget previously noted that premiums typically account for 2% to 5% of the position, making costs manageable.
- Futures Hedging: Shorting perpetual contracts is one of the most active hedging actions on exchanges, especially when the fear index exceeds 60.
- Diversification and Dynamic Rebalancing: Kraken research shows that converting 20% of a portfolio into stablecoins can reduce overall volatility by one-third.
