A mysterious Hyperliquid trader has escalated its bearish bet on BitcoinBTC--, amping up a short position to nearly $496 million at 10x leverage, according to block explorer Hypurrscan data [1]. The whale, dubbed the "insider whale" by the crypto community, has more than doubled its exposure since opening the position with $163 million, betting against a market already reeling from a recent crash tied to U.S. President Donald Trump's 100% tariff announcement on Chinese imports [2]. The position's liquidation price is set at $124,270, below Bitcoin's recent all-time high of $126,080 but above its current price of around $114,430 [3].
The trader's latest move follows a string of high-profile wins. Just days prior, they netted $192 million by shorting Bitcoin and Ether during the market turmoil triggered by Trump's tariff announcement. The timing of their trades-opening a massive short just one minute before the announcement-has sparked speculation about potential insider knowledge [4]. "What incredible 'luck'," tweeted crypto sleuth Coffeezilla, highlighting the whale's precision [5]. Blockchain analysts have since scrutinized the wallet's activity, with some suggesting a possible link to Garrett Jin, former CEO of defunct exchange BitForex. Jin denied any connection, tweeting that the fund in question belongs to his clients and not himself [6].
The identity debate has intensified. While researcher Eye initially flagged wallet address overlaps with Jin's accounts, onchain analyst ZachXBT countered that the only concrete link is a 40,000 USDT transfer. "Everything else is speculation," he tweeted [7]. Jin's Polymarket activity-betting on a TrumpTRUMP-- pardon for Binance's Changpeng Zhao-has also drawn attention, though he insists it predates the recent shorts [8]. Meanwhile, the whale's aggressive positioning has raised red flags about market stability. If Bitcoin surges past $124,270, the position could trigger a cascade of liquidations, further amplifying volatility [9].
The broader market remains fragile. The tariff-driven crash erased $19 billion in liquidations across crypto, with Hyperliquid alone wiping out $1.23 billion in trader capital [10]. Bitcoin plunged 13% to $102,000, while altcoins like EthereumETH-- and XRPXRP-- fell over 20% and 17%, respectively. "This was a black swan event," said David Jeong, CEO of Tread.fi, noting that leveraged futures exacerbated the sell-off [11]. Despite the carnage, some analysts see opportunity. Arthur Hayes of BitMEX called the crash a "rare buying opportunity," predicting a rebound in high-quality assets [12].
The whale's actions underscore the growing influence of hyper-leveraged positions in crypto markets. With $496 million at stake, the trader's bets could sway Bitcoin's trajectory. However, regulatory scrutiny looms. While no official insider trading allegations have been filed, the timing of the shorts has reignited debates about market fairness. "Structural forces like ETF adoption and institutional inflows support long-term growth," said Hashdex's Samir Kerbage, "but short-term volatility remains a risk" [13].
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