Bitcoin News Today: Was Bitcoin's $19B Crash a Purge or Proof of Insider Trading?

Garrett Jin, the former CEO of defunct cryptocurrency exchange BitForex, has denied allegations of insider trading after a massive Bitcoin short positioned just before U.S. President Donald Trump's announcement of 100% tariffs on China sparked a record $19 billion in crypto liquidations. Jin, linked by on-chain sleuths to a wallet controlling over 100,000 BTC, claimed on X that he has "no connection with the Trump family" and criticized Binance co-founder Changpeng Zhao (CZ) for amplifying personal data. The short, which generated over $150 million in profits, was executed less than an hour before Trump's Friday announcement, triggering a sharp Bitcoin drop to $102,000.

The timing of the trade has drawn intense scrutiny. Blockchain analysts noted the wallet opened a $735 million short position minutes before Trump's tariff revelation, a move that crypto researcher Eye attributed to Jin. However, skepticism persists. Pseudonymous on-chain investigator ZachXBT suggested the trades were more likely executed by "a friend of Jin," while analyst Quinten Francois called the evidence "too convenient". Jin further complicated the narrative by stating the wallet belonged to a client, not himself.

Trump's tariff announcement, framed as retaliation against China's export restrictions on rare earth minerals, sent shockwaves across global markets. The S&P 500 and Nasdaq plummeted, while crypto assets faced historic liquidations. Bitcoin alone saw $5 billion in liquidated long positions, with Ethereum and Solana suffering similar fates. Hyperliquid, where the whale's trades were executed, reported over $1.2 billion in losses for the exchange.

The incident has reignited debates about leverage in crypto trading. Jin criticized exchanges for offering excessive leverage on assets lacking intrinsic value, arguing that mechanisms like stabilization funds-common in traditional markets-are needed to prevent crises. His comments followed a weekend in which the same wallet opened a new $160 million short bet on Bitcoin, betting against a potential all-time high.

Insider trading accusations are not new in crypto. In March, a $482,000 profit from BUBB memecoin trades preceded a 50% price drop, while Trump's own memecoin, TRUMP, saw a $6 million purchase just one minute after launch. These cases highlight a pattern of suspicion around timed trades, though proving intent remains challenging without direct evidence.

As the market digests the fallout, analysts remain divided. Some view the crash as a "purge" of excessive leverage, while others warn of broader systemic risks if geopolitical tensions escalate. Bitcoin has since rebounded modestly, trading near $115,000, but the week's events underscore the fragility of leveraged positions in a sector increasingly intertwined with macroeconomic and political developments.

[1] Alleged Hyperliquid Whale Denies Insider Trading with Trumps (https://cointelegraph.com/news/garrett-jin-whale-denies-allegations-shorting-bitcoin)

[2] Alleged Hyperliquid Whale Denies Trump Ties, Thanks CZ for ... (https://www.theblock.co/post/374383/alleged-hyperliquid-whale-denies-trump-ties-thanks-cz-for-doxing-and-pitches-market-stabilization-fund)

[3] Alleged 'Trump Insider Whale' Denies Insider Trading, Opens New ... (https://decrypt.co/344137/alleged-trump-insider-whale-denies-insider-trading-opens-340-million-bitcoin-short)

[5] Bitcoin Whale's $160M Short on Hyperliquid Sparks Insider ... (https://www.cryptotimes.io/2025/10/13/bitcoin-whales-160m-short-on-hyperliquid-sparks-insider-suspicion/)

[6] Did Trump's Tariff Trigger A Crypto Purge Or Just A ... (https://www.forbes.com/sites/digital-assets/2025/10/11/did-trumps-tariff-trigger-a-crypto-purge-or-just-a-panic/)

[8] Trump's new 100% tariffs on China triggered a $19 billion ... (https://www.cnn.com/2025/10/11/business/trump-tariffs-crypto-selloff)

[9] Bitcoin Rebounds After Trump China Tariffs Trigger Crypto Sell ... (https://www.investors.com/news/bitcoin-price-trump-china-tariffs-crypto-selloff-liquidation/)