Bitcoin News Today: Timing the Tariff Storm: Whale's $340M Bet Exposes Crypto's Leverage Crisis

A crypto whale accused of exploiting Trump's China tariff announcement for a $192 million profit has returned with a new $340 million short bet on Bitcoin, denying claims of insider trading and calling for regulatory reforms. The trader, linked to former crypto exchange founder Garrett Jin, has become a focal point of debates over market integrity amid one of the largest liquidation events in crypto history.

Bitcoin's price plummeted by over 10% in early October following President Donald Trump's surprise 100% tariff announcement on Chinese imports, triggering $19 billion in liquidations across exchangesThis is the Full Title of the First News Article^[1]. The crash was exacerbated by highly leveraged positions, with traders using 10x to 50x leverage to amplify gains-or losses-during volatile swingsThis is the Full Title of the Second News Article^[2]. Amid the chaos, a single Hyperliquid account opened massive short positions in Bitcoin and Ethereum just minutes before the tariff news, netting nearly $150 million in profitsFull Title of the Fourth Source Used^[4].

The timing of the trades has sparked allegations of insider knowledge. On-chain analysts, including pseudonymous sleuth "Eye," traced the whale's activity to Garrett Jin, a former CEO of now-defunct exchange BitForexFull Title of the Fifth Source Used^[5]. Jin, however, has denied any Trump family ties or access to non-public information, stating the trades were based on macroeconomic analysis and risk hedging for client fundsFull Title of the Fifth Source Used^[5]. "This isn't insider trading," Jin tweeted, adding that the positions were managed on behalf of clients, not personal gainsFull Title of the Ninth Source Used^[7].

Despite Jin's denial, skepticism persists. The whale's final short was placed at 20:49 GMT, just one minute before Trump's 20:50 GMT tweet announcing the tariffs. "What incredible 'luck,'" remarked Stephen Findeisen, a crypto analyst known as Coffeezilla. The trader's subsequent $340 million short, opened at $116,009, is already up $700,000 in unrealized gains but risks liquidation if Bitcoin breaches $130,460Full Title of the Ninth Source Used^[7].

The incident has reignited calls for tighter crypto regulations. Jin criticized exchanges for offering excessive leverage on volatile assets, proposing a market stabilization fund akin to U.S. equity markets to cushion crisesFull Title of the Fifth Source Used^[5]. "High leverage without intrinsic value support is a systemic risk," he saidFull Title of the Thirteenth Source Used^[9]. Hyperliquid, where the trades were executed, has since reduced leverage caps to 40x for Bitcoin and 25x for Ethereum.

Market participants remain divided. While some argue the timing was coincidental, others highlight the lack of transparency in decentralized trading. "Crypto people are realizing today what it means to have unregulated markets-insider trading, corruption, crime, and zero accountability," said Janis Kluge, a researcher at SWP BerlinFull Title of the Fourth Source Used^[4].

Bitcoin has since rebounded to $115,796, but the episode underscores the fragility of leveraged markets. With Trump's pro-crypto stance and ongoing geopolitical tensions, regulators face mounting pressure to address systemic risks while balancing innovation.

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