Bitcoin News Today: Tariff Spark Ignites Crypto's $19B Leverage Inferno
A prominent crypto trader has profited an estimated $88 million by shorting BitcoinBTC-- just before U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports on October 10, 2025 . The trader opened a massive short position on Hyperliquid, a decentralized derivatives platform, within 30 minutes of the announcement, according to blockchain analytics [3]. This move coincided with a broader market sell-off that erased over $19 billion in leveraged positions within 24 hours, marking the largest single-day liquidation in crypto history [8].
The trader's actions highlight the growing influence of high-leverage short strategies in volatile markets. On Hyperliquid, a separate whale had already deployed a $420 million short position using $80 million in USDCUSDC-- margin and 6x leverage, with a liquidation price of $140,660 per BTC [1]. This whale also transferred $50 million to Binance, suggesting a hedged approach across exchanges. Meanwhile, another trader on Hyperliquid held a $59.1 million short position at an average price of $123,724, with a liquidation threshold at $243,819 [5]. These positions underscore the aggressive bearish sentiment in a market already pressured by geopolitical tensions and regulatory uncertainty.
The October 10–11 crash saw Bitcoin plunge from a record high of $126,198 to $101,500, while EthereumETH-- fell to $3,373.67 [3]. Over 6,300 wallets on Hyperliquid incurred losses, with 205 losing over $1 million each [2]. The sell-off was triggered by Trump's tariffs, which spooked global markets and accelerated Bitcoin's decline. Analysts noted that excessive leverage-some positions exceeding 100x-amplified the downturn, leading to cascading liquidations [8].
The trader who profited $88 million faced scrutiny for their timing, with critics alleging insider knowledge of the tariff announcement . Blockchain forensics revealed the trader's account was created just before the trade, raising questions about potential manipulation [3]. Pro-crypto attorney John Deaton called for a formal investigation into the anomaly [4]. While the trader's strategy remains unproven to involve insider information, the event has reignited debates about market integrity in crypto.
The crash also exposed vulnerabilities in crypto exchanges. Hyperliquid, Bybit, and Binance reported $10.31 billion, $4.65 billion, and $2.41 billion in liquidations, respectively [6]. Binance announced a $283 million compensation package for users affected by token depegs and technical failures during the turmoil [6]. Regulators and market participants are now calling for stricter oversight of leverage and exchange practices to prevent future crises.
Bitcoin's price stabilized around $111,500 by October 11, but analysts remain cautious. Vincent Liu of Kronos Research described the tariffs as the "spark" to leverage's "gasoline," while Arthur Hayes of Bybit predicted a structural reset in altcoin markets [8]. Institutional investors, however, see the dip as a buying opportunity, with global crypto ETF inflows reaching $5.9 billion in early October [4].
The event underscores the dual nature of crypto markets: volatile and speculative, yet capable of attracting long-term capital. As the SEC intensifies scrutiny of digital assets and insider trading , the industry faces a critical juncture. Whether the October crash signals the end of a bull cycle or a temporary correction will depend on macroeconomic stability, regulatory clarity, and the resilience of leveraged trading strategies.
Comentarios
Aún no hay comentarios