Revenge trading describes the impulse to immediately reopen a position after a loss, driven not by analysis but by the desire to recover quickly. The most publicized case involves James Wynn on Hyperliquid, whose short positions on bitcoin were liquidated twelve times in twelve hours in November 2025, reducing his account to just $5,422 before he transferred all remaining capital into even larger positions. The pattern repeated in April 2026, with his account dropping from $100 million to $900 in two weeks, always following the same reflex of immediate reopening in the same direction. This psychological bias is particularly prevalent in the cryptocurrency market, which operates 24 hours a day and is characterized by high volatility, creating ideal conditions for emotional rather than disciplined decisions. The most effective solution remains straightforward: stop trading after a loss and observe a fixed waiting period before any new entry.
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