How Andrew Tate Keeps Losing Money on Crypto: $67K Liquidated on WLFI in Latest Blunder

The World Liberty Financial (WLFI) token has proven to be a turbulent ride since its Monday launch on decentralized exchanges. The Trump family-backed DeFi project saw its WLFI token plummet 36% from its peak of $0.331 to $0.210 within hours of listing. While the token staged a brief recovery, current market data shows WLFI trading at $0.13—a concerning 60% drop from its launch highs. This sharp decline underscores the volatility plaguing the token and the financial bleeding experienced by traders betting on its upside.

Andrew Tate, the former kickboxing champion turned cryptocurrency trader, became the latest victim of this market turbulence. On Tuesday, his leveraged long position on WLFI was forcibly liquidated on Hyperliquid, wiping out $67,500 from his account. According to blockchain tracking platform Lookonchain, Tate’s losses on a single Hyperliquid account have spiraled toward $700,000, following previous setbacks including a failed short position on Kanye West’s YZY token that cost him substantially.

What’s remarkable—or perhaps emblematic of reckless trading behavior—is that Tate immediately reopened another long position on WLFI despite the devastating loss. This pattern of doubling down after liquidations raises questions about the decision-making process behind his trades and whether losses are driving increasingly desperate bets for recovery.

The Cascade Effect: Token Unlock Triggers Market Correction

The WLFI crash correlates directly with a massive token unlock that flooded the market on Monday. The event injected 24.6 billion WLFI tokens into circulating supply, expanding the Trump family’s portfolio holdings to approximately $5 billion. While the project’s founders—including Donald Trump, Donald Trump Jr., Barron Trump, and Eric Trump—had been promised initial lock-ups on their allocations, the sudden supply increase created significant selling pressure.

The project’s governance structure had previously committed to locking founder tokens, but Monday’s unlock served as a reality check for retail investors and leveraged traders already positioned in the token.

WLFI Proposes Token Buyback as Damage Control

In response to the post-launch collapse, World Liberty Financial introduced a governance proposal aimed at stabilizing the token through a buyback and burn mechanism. The proposal mandates that 100% of protocol-generated fees from the platform’s liquidity positions across Ethereum, BNB Chain, and Solana be redirected toward repurchasing WLFI tokens from the open market and permanently removing them via burning.

However, the proposal lacks critical details about the actual volume of protocol fees available for buybacks, making it impossible for investors to calculate whether this mechanism will have meaningful market impact. The mechanism mirrors similar strategies deployed by other projects seeking to reduce circulating supply and artificially boost token demand. Governance responses have reportedly leaned toward approval, though the real-world effectiveness remains unproven.

What’s Next for Struggling WLFI

As WLFI continues trading near $0.13 with 24-hour volatility at 0.74%, the token faces an uncertain outlook. Traders like Andrew Tate persist in betting on recovery despite mounting evidence of structural weakness. Whether the proposed buyback program or other initiatives can reverse the token’s downward trajectory will ultimately depend on organic demand and the strength of World Liberty Financial’s underlying DeFi platform—not speculative fervor or leveraged positions alone.