Bitcoin News Today: "10x Leveraged Bet Crumbles as DOGE Plummets—$22K Vanishes in Seconds"

James Wynn , a well-known trader in the cryptocurrency market, suffered a full liquidation of his 10x leveraged long position in Dogecoin (DOGE) on August 25, 2025, resulting in a loss of $22,627. According to data from Onchain Lens, Wynn's position was wiped out as the price of DOGE dropped into the low $0.22 range, triggering an automatic liquidation due to insufficient margin to cover the leveraged trade. The liquidation occurred through six separate trades, with prices ranging from $0.21757 to $0.23152 and order sizes between 101,105 DOGE and 404,423 DOGE. The largest single trade involved 404,423 DOGE, producing a realized loss of over $9,354 USDC . The incident highlights the heightened risks of leveraged trading in volatile markets, where even experienced traders can face substantial losses when positions are exposed to rapid price movements.

Wynn’s account value dropped from a high of $29,349.55 to $7,722.55 following the liquidation, marking the culmination of a broader trend of declining performance in his portfolio. According to Hyperdash data, Wynn has incurred a cumulative loss of $21.78 million since March 19, 2025, when he began trading via the wallet 0x5078 on the decentralized exchange Hyperliquid. This includes multiple high-profile liquidations, such as a $25 million loss on a $100 million Bitcoin position in late June. Wynn attributed his recent DOGE loss to the actions of an alleged “memecoin cabal,” which he claims orchestrated a coordinated effort to push prices downward and trigger liquidations. He criticized the memecoin market for what he described as “extractive” practices, including “orchestrated pump and dump” schemes.

The liquidation of Wynn’s position also aligns with broader market trends that saw nearly $900 million in bullish bets liquidated in early August 2025, as crypto markets experienced a sharp correction. According to Coinglass data, Ethereum (ETH) traders bore the brunt of the liquidations with $320 million in forced unwinds, while Bitcoin (BTC) and Dogecoin (DOGE) saw losses of $277 million and $90 million, respectively. The volatility spike was linked to a sharp decline in the S&P 500, which dampened risk appetite across asset classes. Daily volatility for BTC surged from 15% to 38%, while ETH volatility jumped from 41% to 70%, according to Derive.xyz. The heightened volatility has led traders to adopt more defensive strategies, with options markets showing a preference for put options over calls.

Despite the immediate losses, the DOGE liquidation has also sparked technical optimism among some analysts. Trader Tardigrade noted that DOGE had broken above a key liquidity zone on the weekly chart, which could signal the start of a potential 3x rally against Bitcoin. The pair has been holding above the 140–160 sats level, a region that had previously acted as a significant support area. According to Tardigrade’s analysis, DOGE could target as high as 0.00000516 BTC, or approximately $0.576, based on current BTC prices. Other analysts, including Ali Martinez, suggested that a short-term pullback to $0.22 could precede a breakout toward $0.26 or higher, depending on broader market conditions and the strength of altcoin season.

The incident underscores the importance of risk management in leveraged trading, particularly in the meme coin space, where price swings can be extreme. Traders are advised to employ stop-loss orders, limit leverage to levels they can manage, and monitor both on-chain metrics and macroeconomic indicators. Wynn’s own comments following the liquidation reflected a shift in his strategy, with the trader stating that he was now “going max long” as he believed the bear market was nearing its conclusion. His remarks suggest that while the risks of leveraged trading remain high, experienced traders may still see opportunities in a market that has historically shown resilience following sharp corrections.

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