An Anonymous Trader Profits $5.6M in 3 Days by Countering James Wynn’s Moves on Hyperliquid

On May 27, on-chain analytics platform Lookonchain reported that a trader with the wallet address 0x2258 earned approximately $5.6 million in profits over three days by systematically countering the trading strategies of high-profile crypto trader James Wynn on the decentralized exchange Hyperliquid. The trader’s precise moves, capitalizing on Wynn’s high-leverage Bitcoin (BTC) and Ethereum (ETH) positions, have fueled community speculation about potential connections between the two accounts, though Wynn has publicly denied any association.

A Calculated Counter-Strategy

According to Lookonchain, the 0x2258 trader’s strategy involved closely monitoring Wynn’s publicly shared trades and taking opposing positions. The sequence unfolded as follows:

• May 24: As Wynn opened a 40x leverage long position on Bitcoin, valued at $1.25 billion, the 0x2258 trader shorted both BTC and ETH.

• May 25: When Wynn closed his BTC long position, 0x2258 closed their short positions, securing a $1.36 million profit.

• May 25: As Wynn flipped to a $1 billion BTC short position, 0x2258 opened long positions on BTC and ETH.

• May 26: When Wynn closed his BTC short, 0x2258 closed their longs, earning $2.54 million.

• May 26: With Wynn re-entering a BTC long position, 0x2258 resumed shorting BTC and ETH, holding an unrealized profit of $1.7 million as of May 27.

The strategic counter-trading netted 0x2258 a total of $5.6 million in realized profits, leveraging Wynn’s high-stakes moves during a volatile market period.

James Wynn Denies Ties to Mysterious 0x2258 Wallet Amid Community Speculation

The 0x2258 trader’s success sparked questions within the crypto community about whether the wallet could be linked to Wynn, potentially used to hedge or profit from his public trades. Some speculated that Wynn might be orchestrating market sentiment through his high-profile account while quietly profiting via a private wallet. However, Wynn addressed these claims on X, stating, “Whoever trader 0x2258 is, it is not me and have no clue who it is. I only trade on one HL account and thats public. ”

Wynn’s transparency about his trading activity aligns with his history of openly sharing positions on Hyperliquid, a decentralized perpetual futures exchange built on its own layer-1 blockchain, HyperEVM. The platform’s permissionless nature and low fees have made it a hub for high-leverage trading, attracting traders like Wynn who embrace significant risk.

James Wynn: From Memecoin Trencher to Billion-Dollar Casino

James Wynn rose to prominence through his early bets on memecoins like PEPE. In April 2023, Wynn invested $7,600 in PEPE when its market cap was $42 million, predicting a rise to $4.2 billion. His vocal advocacy on social media and strategic investments in other meme coins, such as ELON, BIAO, ANDY, and Fartcoin, earned him the moniker “meme coin hunter.” These trades provided the capital and visibility for his later high-leverage ventures on Hyperliquid, where he reportedly amassed $46 million in profits within just two months by May 10, 2025.

Wynn began trading on Hyperliquid in March 2025. According to Lookonchain, Wynn executed 38 trades with a 45% win rate over 75 days, contributing $2.31 million in fees to the platform. His aggressive use of 40x leverage, particularly on Bitcoin, drew attention when he scaled a BTC long position to $1.25 billion on May 24, only to face a $29 million unrealized loss after Bitcoin dipped 4% to $107,431 following U.S. President Trump’s tariff announcement.

On May 26, Wynn closed his $1.2 billion BTC long at a $17.5 million loss and flipped to a $1 billion short position, citing low trading volume and macroeconomic concerns. Later that day, he announced his exit from perpetual trading, claiming a $25.2 million profit and stating, “It’s time for me to walk away a wynner”. However, he soon re-entered the market with a $265 million BTC long position, which faced a $20.38 million unrealized loss by May 27. As of the latest reports by @ai_9684xtpa, Wynn’s BTC long position has been reduced to approximately $44,000, with a $3.42 million unrealized loss.

Market Context: Bitcoin’s Volatility and Hyperliquid’s Rise

The events coincided with a turbulent week for Bitcoin, which hit a record high over $111,500 on May 21-22 before dropping to $107,000 on May 24 due to macroeconomic fears sparked by Trump’s proposed 50% tariffs on EU imports. At the time of writing, Bitcoin trades at $109,619, reflecting ongoing volatility. Hyperliquid’s decentralized exchange has benefited from this market activity, with its native token HYPE rising 40% in the past week and 111% over the last 30 days, driven by high trading volumes.

Lessons for Traders: The Risks of Following the Crowd

The 0x2258 trader’s success underscores a key lesson for crypto investors: blind reliance on high-profile traders like Wynn can be risky. While Wynn’s transparency has made him a focal point for market watchers, the counter-trading strategy highlights the importance of independent research and market analysis.

The controversy surrounding 0x2258 remains unresolved, with no definitive evidence linking the wallet to Wynn. Still, the episode highlights the growing scrutiny of high-leverage trading and the role of decentralized platforms like Hyperliquid in enabling such strategies. As the crypto market continues to evolve, traders must navigate volatility with caution, balancing opportunity with the inherent risks of leverage.

After all, in trading, the only thing that’s always right is the market itself.