Bitcoin News Today: Bitcoin's Pre-Tariff Short Sparks Debate: Skill or Insider Knowledge?

A $735 million Bitcoin short position opened just before U.S. President Donald Trump's surprise 100% tariff announcement on China triggered a crypto market crash has reignited debates over insider trading. The trade, executed via decentralized exchange Hyperliquid, netted the whale an estimated $150 million in profits as Bitcoin plummeted from $68,000 to under $60,000 within hours . Online sleuths linked the short to Garret Jin, founder of the now-defunct Hong Kong exchange BitForex, citing blockchain data tracing the whale's wallet to an ENS domain, garrettjin.eth .

Jin, who previously faced scrutiny after BitForex's 2024 collapse-when $56 million in customer funds vanished-denied allegations of insider trading. In a Twitter response to Binance founder Changpeng Zhao (CZ), who amplified the claims by sharing the analysis, Jin stated he had "no connection with the Trump family" and claimed the short used client funds, not his own . He argued the trade was based on "economic analysis," noting overbought signals in crypto and escalating U.S.-China tensions prior to the tariff threat .

The controversy has divided the crypto community. While some investigators, like pseudonymous analyst EyeOnChain, point to Jin's alleged control of the whale's wallet, others, including blockchain sleuth ZachXBT, suggest the trades were executed by a "friend of Jin" or that evidence is "too convenient" . The debate mirrors past crypto scandals, such as a $482,000 profit from a memecoin trade before a 50% price drop and a $6 million purchase of Trump's memecoin moments after its launch .

The market crash itself was historic. Bitcoin's 8% drop triggered $19 billion in liquidations within 24 hours, the largest in crypto history, as leveraged long positions collapsed . Hyperliquid alone saw nearly $7 billion in liquidations, including a $203 million ETH-USDT position . The selloff also exposed vulnerabilities in crypto's leveraged derivatives market, where 78% of trading volume is perpetual contracts .

Jin's latest move has added another layer to the drama. A new $160 million Bitcoin short opened by the same whale-now up $4 million-has drawn fresh scrutiny. The position, entered at $117,370 with 10x leverage, highlights the ongoing volatility as traders bet on potential follow-through from Trump's protectionist policies .

The incident underscores crypto's growing integration with traditional markets. As Trump's tariff rhetoric intensifies trade tensions, Bitcoin's correlation with the U.S. dollar and macroeconomic sentiment has deepened. Analysts warn that prolonged geopolitical risks could further strain liquidity, particularly in leveraged markets where forced liquidations amplify volatility .

[1] Garret Jin, Crypto Whale Who Shorted Bitcoin Right Before Market Crash (https://finance.yahoo.com/news/garret-jin-crypto-whale-shorted-120113806.html)

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

[3] Garrett Jin Denies Being the Hyperliquid Whale Behind $735M Short (https://ecoinimist.com/2025/10/14/garrett-jin-denies-being-whale-bitcoin/)

[4] Bitcoin Short Position Profit: Meet Garret Jin, The Mysterious Trader (https://economictimes.indiatimes.com/news/international/us/garret-jin-the-mysterious-trader-who-made-millions-shorting-bitcoin-before-crypto-crash/articleshow/124527974.cms)

[5] Was the Whale Who Shorted Before Donald Trump's Tariff Announcement His Son? (https://en.bitcoinsistemi.com/was-the-whale-who-shorted-before-donald-trumps-tariff-announcement-his-son-barron-trump-heres-what-we-know/)

[6] Biggest Crypto Liquidation Ever Sees $16B Longs Decimated (https://www.coindesk.com/markets/2025/10/10/usd16b-in-longs-liquidated-as-wall-street-sell-off-extends-btc-eth-broader-crypto-market-meltdown)

[7] Explaining the Bitcoin Crash: What Are Liquidations and Leverage? (https://decrypt.co/344141/explaining-bitcoin-crash-liquidations-leverage)

[8] Hyperliquid Whale Who Timed Trump Tariff Crash Doubles Down (https://coincentral.com/hyperliquid-whale-who-timed-trump-tariff-crash-doubles-down-with-new-bitcoin-short/)

[9] Cryptocurrency Derivatives Market Statistics 2025 (https://coinlaw.io/cryptocurrency-derivatives-market-statistics/)

[10] Hyperliquid Whale Bets Big: Short Positions Triggered Market Carnage (https://www.btcc.com/en-US/square/Blockchainreporter/1058309)

[11] Early Bitcoin Whale Shorted $1.1B Right Before Tariffs, Now Up $27M (https://www.tradingview.com/news/cryptonews:4c6d1252f094b:0-early-bitcoin-whale-shorted-1-1b-right-before-tariffs-now-up-27m-how-did-he-know/)