According to Lookonchain, trader 0x2258 attempted to countertrade @JamesWynnReal by going long on $ETH and $BTC after JamesWynnReal's liquidation, expecting a rebound. However, as both Ethereum and Bitcoin prices continued to decline, 0x2258 was forced to close out his long positions, resulting in a realized loss of $388,000 (source: Lookonchain via X.com, June 6, 2025). This incident highlights the risks of rebound trading strategies and serves as a caution for crypto traders relying on liquidation events as entry signals, especially in volatile market conditions.

According to Crypto Rover, a major Bitcoin whale using 40x leverage has been fully liquidated, leaving a remaining balance of just $16.28 (source: Crypto Rover on Twitter, May 31, 2025). This high-profile liquidation highlights increased risk for overleveraged traders and may trigger heightened volatility in the Bitcoin and broader crypto markets. The incident draws attention to the dangers of excessive leverage and could lead to short-term selling pressure, especially as other traders reassess their risk exposure in response to this significant event.