Bitcoin News Today: Timed Crypto Short Before Trump Tariff Shock Ignites Insider Trading Debate

A major Bitcoin short position taken by a crypto whale on Hyperliquid ahead of President Donald Trump's tariff announcement has ignited accusations of insider trading, with Garret Jin, a Hong Kong-based entrepreneur, denying any connection to the Trump family or illicit market advantagesGarret Jin Has Been Identified as the Whale Who Shorted Bitcoin Right Before …^[1]. The $735 million short, executed just 30 minutes before Trump's October 10 threat to impose 100% tariffs on Chinese imports, earned an estimated $150 million in profits as Bitcoin plummeted from $68,000 to under $60,000Garret Jin Has Been Identified as the Whale Who Shorted Bitcoin Right Before …^[1].

On-chain analysts traced the trade to Jin, founder of the defunct exchange BitForex, via transactions linked to his ENS domain, garrettjin.ethGarret Jin Has Been Identified as the Whale Who Shorted Bitcoin Right Before …^[1]. The allegations gained traction after Binance founder Changpeng "CZ" Zhao amplified the claims on social media, sparking public scrutiny. Jin responded by asserting he had no ties to Trump and that the trade was based on "economic analysis," not insider knowledgeGarret Jin Has Been Identified as the Whale Who Shorted Bitcoin Right Before …^[1]. He also claimed the funds used for the short belonged to clients, not his personal assetsGarret Jin Has Been Identified as the Whale Who Shorted Bitcoin Right Before …^[1].

The timing of the trade has drawn intense skepticism. Stephen Findeisen, known as Coffeezilla, highlighted that the whale's last short was placed at 20:49 GMT, just one minute before Trump's tweet at 20:50 GMTBitcoin Whale’s $160M Short on Hyperliquid Sparks Insider …^[2]. Further analysis by blockchain researcher Eye suggested a 40,000 USDT transaction connected the whale's wallet to Jin's ENS domainBitcoin Whale’s $160M Short on Hyperliquid Sparks Insider …^[2]. However, other analysts, including ZachXBT, dismissed the link as speculative, noting the connection rests on a single transferBitcoin Whale’s $160M Short on Hyperliquid Sparks Insider …^[2].

The broader market impact of Trump's tariffs was catastrophic. CoinGlass data revealed $19 billion in crypto liquidations, with Bitcoin, Ethereum, and Solana among the hardest-hit assets. The crash erased nearly $560 billion in market value in 24 hours, as leveraged long positions collapsed. While some analysts argue the event exposed excessive market leverage, others suggest it could clear the path for a rebound, with Edul Patel of Mudrex noting historical October corrections often precede rallies.

Jin, who previously founded BitForex-a exchange that collapsed in 2024 after $57 million in losses-has since launched ventures like XHash, an institutional Ethereum staking platformGarret Jin Has Been Identified as the Whale Who Shorted Bitcoin Right Before …^[1]. His defense centers on macroeconomic indicators, such as rising U.S.-China tensions and overbought signals in crypto and tech stocks, to justify the tradeGarret Jin Has Been Identified as the Whale Who Shorted Bitcoin Right Before …^[1]. Meanwhile, CZ's public doxxing of Jin has amplified the debate over transparency in crypto trading, with critics questioning whether high-profile actors should be subjected to such scrutinyGarret Jin Has Been Identified as the Whale Who Shorted Bitcoin Right Before …^[1].

The incident underscores growing concerns about fairness in crypto markets. While Jin insists his actions were legitimate, the near-perfect timing of the short has left many questioning whether insider information or sophisticated analysis gave him an edgeBitcoin Whale’s $160M Short on Hyperliquid Sparks Insider …^[2]. As the sector grapples with regulatory uncertainty and geopolitical risks, the debate over market integrity is likely to persist.