Bitcoin News Today: Unregulated Crypto Markets Breed Insider Fears as Whale's Short Gains $3.5M

A mystery crypto whale known for a $192 million profit from a perfectly timed short before U.S. President Donald Trump's China tariff announcement has returned with another massive bearish bet. Blockchain data shows the trader, identified by wallet address 0xb317 on decentralized derivatives exchange Hyperliquid, opened a $163 million leveraged short position on Bitcoin (BTC) on October 13, 2025 Mystery Whale Opens $163M Bitcoin Short After $192M Profit^[1]. The 10x leveraged position is currently valued at $3.5 million in unrealized gains but risks liquidation if BTC rises to $125,500 Crypto Whale Opens New $163M Bitcoin Short After $192M Win^[2].

The whale's previous trade, executed 30 minutes before Trump's 100% tariff announcement on October 10, triggered a market-wide collapse and netted nearly $192 million in profit BTC Short: Whale Bets $163M After $192M Profit Haul - 99Bitcoins^[3]. This has led to widespread speculation of insider trading, with observers dubbing the trader an "insider whale." Crypto analyst MLM noted that the same address shorted an additional $900 million in BTC and ETH minutes before the crash, potentially exacerbating the liquidation cascade Trader who made $192M shorting the crypto crash is back with 2 …^[4]. Over 250 wallets lost "millionaire" status on Hyperliquid following the selloff, according to on-chain trackers Crypto Whale Behind $192M Short Bet Strikes Again With Massive …^[5].

Binance, the world's largest crypto exchange, faced scrutiny amid reports of failed stop-loss orders and token depegging during the crash. The exchange denied technical malfunctions, attributing the issues to a "display glitch" and confirming its core systems remained operational Binance Denies Role in Crash^[6]. Binance also pledged $283 million in compensation to users holding depegged assets like USDE and WBETH Binance Under Fire After BTC Short Selloff Glitch^[7]. Meanwhile, Bitcoin's price rebounded to over $114,000, though analysts warn the market remains fragile.

The lack of regulatory oversight has intensified debates about crypto market integrity. Janis Kluge, a researcher at SWP Berlin, criticized the unregulated nature of decentralized trading, stating, "Crypto people are realizing today what it means to have unregulated markets: Insider trading, corruption, crime, and zero accountability" Community Reaction^[8]. Some traders speculated the whale could be linked to Trump's inner circle, including his son Barron, though no evidence supports this claim Speculation Around Barron Trump’s Involvement^[9].

As volatility persists, the crypto community remains divided. While the whale's latest short signals continued bearish sentiment, others are betting on a rebound. A separate trader opened a $11 million long position on Bitcoin with 40x leverage Crypto Whale Shorts $163M in Bitcoin After $192M Profit^[10]. The market's next move will likely hinge on Trump's evolving trade policies and broader macroeconomic trends.