Bitcoin News Today: Trader Denies Insider Allegations as $340M Bitcoin Short Ignites Market Integrity Debate

A prominent cryptocurrency trader, dubbed a "Trump insider whale," has denied allegations of insider trading while opening a new $340 million short position on Bitcoin. The trader, whose actions before President Donald Trump's 100% tariff announcement on China sparked a record $19 billion in crypto liquidations, has once again positioned itself bearishly on the leading digital asset Alleged 'Trump Insider Whale' Denies Insider Trading, Opens New …^[13].

The whale's latest move comes after it previously pocketed over $160 million by shorting Bitcoin and Ethereum just minutes before Trump's October 10 announcement, which triggered a 7.5% drop in BTC to $112,505.92 and a 12.5% plunge in ETH to $3,837.57 How One Trader Made $160 Million Shorting Crypto …^[1]. On-chain analysts noted the uncanny timing, with the trader's positions opened on Hyperliquid, a decentralized derivatives exchange, 30 minutes prior to the tariff reveal. This led to speculation that the entity had advance knowledge of the policy shift Trader Who Made $192M Shorting the Crypto Crash is Betting^[3].

Garrett Jin, a former CEO of now-defunct exchange BitForex and a figure linked to the whale's trades, has publicly denied any connection to the Trump administration or insider trading. Jin stated on X, "I have no relationship with the Trump family or Donald Trump Jr.-this isn't insider trading," clarifying that the fund in question belongs to his clients and is managed through research-driven strategies Alleged Hyperliquid whale denies Trump ties, thanks CZ^[10]. Despite Jin's denial, blockchain sleuths traced transaction patterns and wallet addresses to suggest a potential link between the whale and his prior ventures, including Huobi and BitForex Blockchain Sleuth Links Garrett Jin to Hyperliquid Trader^[9].

The trader's latest $340 million short on Bitcoin, using 10x leverage, has reignited debates about market fairness and regulatory oversight. The position, which would liquidate if BTC surges to $130,460, reflects a continued bearish outlook amid heightened volatility. Meanwhile, the crypto market remains on edge, with over $1.2 billion in trader capital wiped out on Hyperliquid alone during the October 10-11 crash Trader Who Made $192M Shorting the Crypto Crash is Betting^[3].

Hyperliquid's role in these trades has drawn scrutiny. The platform's Auto-Deleveraging (ADL) mechanism, designed to prevent bad debt during extreme volatility, exacerbated the October selloff by forcing profitable positions to cover losses. Over 6,000 wallets were hit during the crash, raising questions about the risks of high-leverage trading on decentralized platforms Trader Who Made $192M Shorting the Crypto Crash is Betting^[3].

Jin has called for systemic reforms, arguing that exchanges offering excessive leverage on volatile assets without intrinsic value pose significant risks. He proposed a stabilization fund akin to those in traditional markets to provide liquidity during crises, stating, "Exchanges should implement mechanisms to restore trust and foster healthy growth" Garrett Jin Denies Trump Ties and Criticizes Crypto Leverage^[12].

The incident underscores broader concerns about transparency in crypto trading. While the whale's precise timing and profits remain unverified, the episode highlights the need for clearer accountability in an industry where pseudonymity often obscures institutional activity. As regulators and exchanges grapple with these challenges, the debate over market integrity-and who holds the keys to its stability-continues to evolve.