Whales Lose Millions as Trump Token WLFI Drops 40 Percent

Whale losses around WLFI have been heavy and quick. Since launch, the Trump-linked token has fallen over 40 percent, wiping millions from large investors who chased the early hype. The effort to slow the decline with a 47 million token burn barely registered in the market. WLFI still slid another 18 percent in the next day, leaving prices near $0.23 and investor sentiment ranking it as the ninth most bearish token out of the top 100. Almost a third of holders now lean negative, which says a lot about confidence.

Leverage Turns Profits Into Heavy Whale Losses

The breakdown of losses shows how quickly leverage and momentum can turn. One whale address booked a $915,000 gain on a leveraged long, only to see it reverse into a $1.6 million loss within hours. Another whale, who bought $2 million worth of WLFI at $0.27, is already down more than $650,000. On Hyperliquid, a leveraged long bled out $2.2 million, while a short seller walked away with $1.8 million in profit. The contrast between leveraged longs and short positions here is stark. It reinforces that FOMO-driven bets rarely pay when the fundamentals are thin.

Token Burn Fails to Stop WLFI Decline

Burning tokens is meant to create scarcity and show commitment to holders. In practice, WLFI burned just 0.19 percent of supply which is a rounding error against the 100 billion total. Without demand to match, scarcity feels cosmetic. The market reacted accordingly, and the price kept falling. It’s a reminder that mechanics like token burn can’t substitute for adoption, revenue, or clear utility. They may nudge short-term sentiment, but they can’t build long-term value.

These whale losses echo what’s been seen in other high-profile collapses. Terra’s crash in May 2022 vaporized hundreds of millions in whale positions almost overnight. The FTX meltdown later that year wiped out more than a billion in whale leverage as bankruptcy news spread. Even meme tokens like Dogwifhat have followed the cycle: huge early gains for some whales, followed by sharp crashes that left latecomers nursing steep drawdowns. Each time, investor sentiment turned fast, and there was no defensive mechanism in form of burns, branding, or otherwise could stop the slide once confidence cracked.

Psychology Behind Whale Losses and Retail Impact

Whales took on leveraged longs expecting quick wins, but those positions magnified the downside once WLFI lost momentum. Retail holders often watch whales for cues, but the assumption that big money knows best doesn’t hold up. The truth is whales face the same risks, just at a larger scale. When sentiment goes bearish, losses stack fast regardless of wallet size.

The WLFI launch has become a textbook example of how hype-driven projects play out. Token burn without real adoption is cosmetic. Whale losses show that scale doesn’t protect against poor fundamentals. Leveraged longs are a gamble, not a strategy. And investor sentiment, once it turns bearish, is hard to reverse with quick fixes.