Bitcoin News Today: Crypto's $496M Short Mystery: Timing Raises Manipulation Fears

A mysterious Hyperliquid trader has doubled down on a massive Bitcoin short, raising fresh questions about potential insider trading and market manipulation. According to data from the Hyperliquid block explorer Hypurrscan, the whale now holds a $496 million short position at 10x leverage, with a liquidation price of $124,270HyperLiquid Whale Loads Up Almost $500 Million On New BTC Short^[1]. This follows a $192 million profit from shorting the crypto market during a recent crash triggered by U.S. President Donald Trump's tariff announcementAlleged Hyperliquid whale denies Trump ties, thanks CZ for …^[6]. The trader's latest move has intensified scrutiny over their timing, as the position was aggressively scaled up minutes before Trump's high-profile policy declarationBitcoin Whale’s $160M Short on Hyperliquid Sparks Insider …^[2].

The whale's strategy has drawn comparisons to traditional financial markets, where leveraged bets often hinge on macroeconomic events. However, the crypto sector's lack of regulation has amplified concerns about unfair advantages. "The HyperLiquid whale shorting BTC/ETH yesterday was placing shorts up till exactly 1 minute before Trump threatened tariffs," noted Stephen Findeisen, known as Coffeezilla, on XBitcoin Whale’s $160M Short on Hyperliquid Sparks Insider …^[2]. The trader's actions align with prior patterns: in early October, they opened $900 million in shorts across Bitcoin and Ether, profiting nearly $158 million in a weekGarrett Jin Denies Trump Ties and Criticizes Crypto Leverage^[7].

Speculation about the whale's identity has centered on Garrett Jin, former CEO of the now-defunct exchange BitForex. On-chain sleuth Eye initially linked Jin to the wallet via a 40,000 USDT transfer to a wallet associated with "garrettjin.eth". However, Jin denied the connection, stating on X, "The fund isn't mine - it's my clients'. We run nodes and provide in-house insights for them." Other analysts, including ZachXBT, argue the link is speculative, noting that the only direct connection is the USDT transfer, with the whale more likely being a "friend of Jin"Bitcoin Whale’s $160M Short on Hyperliquid Sparks Insider …^[2].

Jin's involvement in the saga has broader implications for crypto market integrity. He criticized exchanges for offering excessive leverage on assets lacking intrinsic value, calling for a stabilization fund akin to those in traditional equities to mitigate crisis-driven volatility. His comments follow Friday's record $19 billion in crypto liquidations, which saw over 1.6 million traders wiped out.

The incident has reignited debates about accountability in decentralized markets, where pseudonymous actors can execute large positions without oversight. While no regulatory findings of wrongdoing have been announced, the episode underscores crypto's vulnerability to manipulation. "The deeper issue with the crypto industry is that exchanges offer high leverage on assets that lack intrinsic value," Jin said.

As Bitcoin trades near $115,000, the whale's $496 million short remains a wildcard. If the price rebounds toward $124,270, the position could trigger a cascading liquidation, further destabilizing markets. For now, the trader's identity-and the legitimacy of their timing-remains a hotly contested mysteryHyperliquid ^[3].