Arthur Hayes has reduced his high-leverage Bitcoin positions in response to recent volatility in the Japanese market. In his article "Woomph," Hayes highlighted the depreciation of the Japanese yen and the decline in Japanese government bond prices as factors causing global financial instability. He anticipates potential intervention by the U.S. Federal Reserve and Treasury to stabilize the yen and bond markets, which could involve expanding their balance sheets and injecting liquidity into the global fiat system. Hayes stated he will refrain from increasing risk exposure until there is confirmation of such intervention. He has already closed high-leverage Bitcoin positions in Strategy and Metaplanet, and his fund Maelstrom is currently focusing on Zcash and other DeFi tokens. Hayes plans to increase positions in DeFi assets like ENA, ETHFI, PENDLE, and LDO once the Fed's intervention is confirmed.