The recent performance of WLFI has had traders and investors buzzing, especially as some recorded significant returns while others faced steep losses. The volatility left many in the market reevaluating their strategies.

In a dramatic turn, a prominent investor exited a 3x leveraged position, resulting in a staggering loss of over $1.6 million. Interestingly, this same trader had initially profited around $915,000 shortly before the market downturn.

The Impact on Major Investors

The market tug-of-war has not spared even the largest accounts. For instance, wallet 854RaR invested approximately $2 million in WLFI earlier this week but found itself down nearly $650,000 by Thursday.

WLFI has plunged below the $0.19 mark.

Trader 0x1527 is facing more than $2.2 million in losses from his $WLFI long position.

Conversely, trader 0x92bb has managed to secure over $1.8 million in profits from a well-timed short.

— Lookonchain (@lookonchain) September 4, 2025

Wallet 0x1527 on Hyperliquid showcased unrealized losses surpassing $2.2 million, while wallet 0x92bb reported a lucrative $1.8 million profit from a short position. Influencers aren’t immune either; Andrew Tate reportedly sustained a liquidation loss of $67,500, adding drama to the ongoing saga.

The takeaway from this turbulent period? Investors should be wary of FOMO (fear of missing out) strategies, as they often lead to emotionally driven decisions that can be disastrous.

This whale has completely exited its $WLFI long position, incurring a loss of $1.635 million.

Remember: FOMO can spell trouble for traders.

— Onchain Lens (@OnchainLens) September 4, 2025

Market Dynamics: Price and Volume Insights

The WLFI price decline intensified post its market launch. Data from Coingecko indicates the token experienced a swift 15% drop in just 24 hours as of Thursday afternoon, marking a total decline of 38% since its release on Monday.

Initially launching at $0.329, the token quickly descended to just above $0.22. Remarkably, over $1 billion in trading volume was recorded within the first hour of its launch, with prices fluctuating between $0.23 and $0.31 during this initial trading frenzy.

Market activity was brisk, with traders rapidly entering and exiting positions, leading to heightened volatility.

Attempts to Stabilize: The Burn Campaign

In an effort to stabilize the fluctuating market, World Liberty Financial executed a burn of 47 million WLFI tokens, totaling about 0.16% of the circulating supply, which stands at nearly 25 billion tokens out of the original 100 billion.

Despite this initiative, the downward trend continued, and investor sentiment remained pessimistic. Although the burn appeared significant on paper, it paled in comparison to the total supply and the increased selling pressure observed in the market.

Changing Market Sentiment

Current metrics indicate that WLFI ranks as the ninth most-bearish asset within the top 100 cryptocurrencies, with close to 30% of holders expressing a negative sentiment. This turnaround occurred almost immediately following the token’s launch and the ensuing trading volatility.

Market analysts note the susceptibility of sentiment to shifts, particularly when influential holders withdraw their positions or face liquidation.

While short sellers take advantage of price declines to capitalize on profits, many long-term supporters scramble to safeguard their investments.

Image credits: Meta, TradingView