Bitcoin News Today: "Bitcoin Whale's $496M Short Sparks Crypto Market Integrity Debate"

A mysterious Hyperliquid trader has intensified its bearish stance on Bitcoin, opening a $496 million short position at 10x leverage as speculation swirls over potential insider knowledge. The whale, which previously netted $150 million by shorting crypto before President Donald Trump's 100% tariff announcement on Chinese imports, has doubled down on its bet, with Bitcoin currently trading near $114,430 Bitcoin Whale’s $160M Short on Hyperliquid Sparks Insider …^[1]. The position, which entered at $117,370, carries a liquidation price of $123,500-just below BTC's recent all-time high of $126,080 Hyperliquid Whale Who Timed Trump Tariff Crash Doubles Down …^[3].

The trader's timing has drawn scrutiny. Onchain analysts noted that the whale placed its last short just one minute before Trump's Friday evening tweet, which triggered a crypto market crash and record $19 billion in liquidations Bitcoin Whale’s $160M Short on Hyperliquid Sparks Insider …^[1]. Stephen Findeisen, known as Coffeezilla, highlighted the "incredible 'luck'" of the whale's timing on X, while blockchain sleuth EyeOnChain linked the trader's wallet to Garrett Jin, the former CEO of now-defunct exchange BitForex Hyperliquid Whale Who Timed Trump Tariff Crash Doubles Down …^[13]. Jin denied any connection, stating the funds belonged to clients and emphasizing his trades were based on economic analysis rather than insider information Who Is Garret Jin? Crypto Whale Who Shorted Bitcoin Right Before …^[11].

The controversy deepened as Binance founder Changpeng Zhao amplified Eye's claims by sharing them with his 10 million followers. Jin responded by accusing CZ of exposing his "personal and private information" and reiterated his lack of ties to the Trump family Bitcoin overwhelmed by US-China trade war: collapse below …^[12]. Meanwhile, onchain investigator ZachXBT cast doubt on the BitForex link, noting the only direct connection was a 40,000 USDT transfer to Jin's wallet, with other claims labeled as "unconfirmed theories" Bitcoin Whale’s $160M Short on Hyperliquid Sparks Insider …^[1].

Jin's involvement in the crypto space remains contentious. He co-founded BitForex, which collapsed in 2024 after a $57 million loss, and later launched projects like XHash, an institutional Ethereum staking platform. Critics argue that his Polymarket position on a potential Trump pardon for former Binance CEO Zhao further fuels suspicions of market manipulation Hyperliquid Whale Who Timed Trump Tariff Crash Doubles Down …^[13]. However, analysts like Quinten François have dismissed the evidence as "too convenient," suggesting the whale could be a "friend of Jin" rather than the ex-BitForex CEO himself Bitcoin overwhelmed by US-China trade war: collapse below …^[12].

The broader market has turned bearish, with over 53% of Bitcoin positions now short, according to CoinGlass data. Prominent trader James Wynn recently exited a $1.25 billion long position and opened a $377 million short, signaling waning confidence in a sustained rally Bitcoin Short Positions Increase as Market Sentiment Shifts to Fear^[7]. Meanwhile, CoinGlass reported that $11.5 billion in short positions could be liquidated if BTC surges to its $111,900 all-time high, creating a potential short squeeze Hyperliquid Whale Linked to Ex-BitForex CEO Garrett Jin: Researcher^[10].

As the debate over insider trading continues, the crypto community remains divided. While some argue the whale's actions expose systemic vulnerabilities in decentralized markets, others caution against overreliance on circumstantial on-chain data. With Bitcoin hovering near critical support levels, the outcome of this high-stakes bet could reshape perceptions of market integrity in the crypto sector.