Bitcoin News Today: Smart money crypto trader nets $5.16M shorting Bitcoin during UST collapse

Generated by AI AgentCoin World
Monday, Aug 25, 2025 10:06 pm ET1min read
BTC
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Aime RobotAime Summary

- A "smart money" crypto trader earned $5.16M by shorting Bitcoin during the 2022 Terra UST/LUNA collapse, capitalizing on the market's systemic crash.

- The trader later reduced risk by selling 15 WBTC ($1.68M) at $111,991, leaving a 15 WBTC balance, reflecting disciplined profit-securing tactics.

- On-chain analysts note the strategic position management pattern, though the trader remains anonymous with no disclosed future plans or current BTC positions.

- The activity highlights sophisticated crypto participants adapting to volatility, potentially shaping major asset price movements amid regulatory uncertainty.

A well-capitalized crypto trader, often referred to as "smart money" in market circles, reportedly generated $5.16 million by shorting

Bitcoin
during the May 2022 collapse of Terra’s UST and LUNA tokens [1]. This position was taken amid one of the most severe and rapid de-pegging events in crypto history, during which Bitcoin and other major assets were pulled into a widespread bear market.

Recent on-chain data reveals that the same entity, identified by wallet activity, has continued to scale back its exposure by selling 15 WBTC—valued at approximately $1.68 million—at a price of $111,991.22 eight hours prior to the latest analysis [1]. This transaction brings the remaining balance of the account down to just 15 WBTC, suggesting a disciplined approach to securing profits and reducing risk after a high-volatility trade.

The shorting strategy executed during the LUNA/UST collapse showcased the trader’s ability to read market sentiment and act decisively under extreme conditions. Shorting Bitcoin during a broad market sell-off is not only a bold move but also requires precise timing and a deep understanding of how interconnected crypto markets can be during systemic stress.

On-chain analyst @ai_9684xtpa noted that the reduction of 15 WBTC is consistent with a pattern of strategic position management. The trader has not publicly disclosed identity or future trading intentions, maintaining the typical anonymity seen in high-stakes crypto trading circles. There is currently no data indicating whether the account still holds a long or short position in BTC beyond this latest adjustment.

The ongoing activity from this wallet underscores the presence of sophisticated participants who continuously adapt to shifting market conditions. With increased regulatory scrutiny and market uncertainty, such traders are likely to remain key players in shaping the landscape of major crypto asset price movements.

[1] BlockBeats — [https://www.theblockbeats.info/en/flash/309198]