Bitcoin News Today: One-Minute Short Before Trump's Tweet Triggers $19B Crypto Crash

A mysterious crypto whale has drawn intense scrutiny after pocketing $192 million from a perfectly timed short bet against Bitcoin and Ethereum ahead of former U.S. President Donald Trump's 100% China tariff announcement, with the trader now doubling down on bearish positionsBitcoin Whale’s $160M Short on Hyperliquid Sparks Insider …^[1]. The trader, identified by the address 0xb317 on decentralized derivatives exchange Hyperliquid, opened a $160 million leveraged short on Bitcoin at 10x leverage, with an entry price of $117,370 and a liquidation threshold at $123,500Hyperliquid Whale Who Timed Trump Tariff Crash Doubles Down …^[2]. As Bitcoin trades near $114,430, the position is already up $3.5 million in unrealized gainsThe Block may may earn a commission if you use our partner offers, at no extra cost to you.^[3].

The original trades, executed minutes before Trump's October 10 announcement, triggered a historic market crash. Over $19 billion in liquidations occurred as crypto prices plummeted, with the whale's $80 million BTC short and $30 million ETH short generating nearly $158 million in combined profitsTrader Who Made $160 Million Shorting Bitcoin, Ethereum Before …^[4]. On-chain analysts, including YouTuber Coffeezilla, highlighted the suspicious timing: the final short was placed at 20:49 GMT, just one minute before Trump's 20:50 GMT tweetHow Crypto Whales Played Trump’s Tariff-Induced Volatility^[5]. This precision has fueled speculation of insider knowledge, with some linking the whale to Garrett Jin, co-founder of defunct exchange BitForex. A 40,000 USDT transfer between wallets associated with Jin and the whale was noted, though analysts like ZachXBT dismissed the connection as speculativeMystery Whale Opens $163M Bitcoin Short After $192M Profit^[6].

The trader's activities have reignited debates about market integrity. Janis Kluge of SWP Berlin warned that unregulated decentralized platforms enable "insider trading, corruption, crime, and zero accountability"BTC Short: Whale Bets $163M After $192M Profit Haul - 99Bitcoins^[7]. Meanwhile, Binance faced criticism for alleged system failures during the crash, including depegged stablecoins and failed stop-loss orders. The exchange denied technical faults but announced $283 million in compensation for affected usersCrypto Whale Opens New $163M Bitcoin Short After $192M Win^[8].

The whale's latest $163 million short, opened late Sunday, underscores persistent bearish sentiment despite Bitcoin's partial recovery to $114,700Trader Who Made $192M Shorting the Crypto Crash is Betting …^[9]. Critics argue the position could exacerbate volatility if Bitcoin approaches the liquidation price of $125,500. Conversely, some traders have taken aggressive long positions, including a 40x leveraged $11 million bet, signaling a divided market outlookBTC Short: Whale Bets $163M After $192M Profit Haul - 99Bitcoins^[10].

As regulators and investors grapple with the implications of such high-stakes trades, the incident highlights the risks inherent in decentralized markets. With over 250 Hyperliquid wallets losing millionaire status during the crashMystery Whale Opens $163M Bitcoin Short After $192M Profit^[11], the episode serves as a stark reminder of the fragility and potential for manipulation in crypto's unregulated corners.