Bitcoin News Today: Suspicious Timing Sparks Debate as Whale Nabs $3.4M from Pre-Trump Tariff Short

A massive $160 million short position on Bitcoin (BTC) opened via decentralized derivatives platform Hyperliquid just minutes before U.S. President Donald Trump announced new 100% tariffs on Chinese imports has sparked allegations of insider trading. The trader, dubbed a "whale" by on-chain analysts, has since denied any connection to the Trump administration or illicit market manipulation, citing data-driven strategies insteadBitcoin Whale’s $160M Short on Hyperliquid Sparks Insider …^[1].

The position, leveraged at 10x and backed by $16 million in margin, was opened at a BTC price of $117,370, with a liquidation threshold set at $123,520-just below BTC's recent all-time high of $126,198Bitcoin Whale’s $160M Short on Hyperliquid Sparks Insider …^[1]. Bitcoin's price plummeted to $102,000 following the October 10 tariff announcement, triggering over $19 billion in liquidations across crypto marketsAlleged Hyperliquid Whale Denies Insider Trading with Trumps^[2]. The whale's profit from the trade reportedly exceeded $3.4 million, with some analysts suggesting total gains could approach $200 millionTrader Who Made $192M Shorting the Crypto Crash is Betting^[3].

On-chain sleuths, including YouTuber Stephen Findeisen (Coffeezilla), highlighted the "incredible luck" of the timing, noting that the last short was placed at 20:49 GMT, just one minute before Trump's tweetBitcoin Whale’s $160M Short on Hyperliquid Sparks Insider …^[1]. Blockchain researcher Eye further complicated the narrative by linking the whale's wallet to Garrett Jin, co-founder of defunct exchange BitForex. Eye identified a 40,000 USDT transfer between the whale's address and a wallet associated with Jin's Ethereum Name Service (ENS) domain, "garrettjin.eth"Inside the Bitcoin Crash: Garrett Jin, Trump Tariffs, and the $19B ...^[5]. However, other analysts, including ZachXBT, dismissed the connection as speculative, arguing that the transfer alone does not prove involvementAlleged Hyperliquid Whale Denies Insider Trading with Trumps^[2].

Jin, who previously led BitForex until its 2024 collapse amid a $57 million loss, denied the allegations in a public post. He stated that the wallet in question belonged to a client and that his trades were based on "economic analysis" of escalating U.S.-China tensions and overbought market conditionsAlleged Hyperliquid Whale Denies Insider Trading with Trumps^[2]. Jin also criticized Binance founder Changpeng Zhao (CZ) for amplifying the claims by retweeting Eye's analysis to his 10 million followersInside the Bitcoin Crash: Garrett Jin, Trump Tariffs, and the $19B ...^[5].

The incident has reignited debates over transparency in crypto trading. Hyperliquid, a favored platform for high-frequency traders due to its on-chain execution and deep liquidity, played a central role. Its Auto-Deleveraging (ADL) mechanism-a safety feature to prevent bad debt-exacerbated the selloff by liquidating profitable positions to cover losses, wiping $1.2 billion in capital during the crashTrader Who Made $192M Shorting the Crypto Crash is Betting^[3].

While some analysts remain skeptical, others point to historical precedents of suspiciously timed trades in crypto. For instance, a $482,000 profit was made on memecoin BUBB before a 50% price drop in March, and Trump's own memecoin, TRUMP, saw a $6 million purchase just one minute post-launch in JanuaryAlleged Hyperliquid Whale Denies Insider Trading with Trumps^[2].

Jin has pledged to share insights into institutional risk management strategies, potentially shedding light on how professional traders navigate macro events. For now, the debate hinges on the 30-minute window between the whale's final short and Trump's announcement-a gap that fuels both intrigue and uncertainty in an industry where timing often trumps transparency.