Bitcoin News Today: Unregulated Crypto Markets Face Systemic Crisis as Whale's Bet Triggers $1.2B Collapse

A mystery crypto trader dubbed an "insider whale" for pocketing $192 million from a perfectly timed short before President Donald Trump's 100% tariff announcement on China has opened another massive bearish bet. The trader, identified by the wallet address 0xb317 on decentralized derivatives platform Hyperliquid, recently placed a $163 million 10x leveraged short on Bitcoin (BTC), currently valued at $3.5 million in profit but at risk of liquidation if BTC breaches $125,500 Trader who made $192M shorting the crypto crash is doing it again^[1]. The move has reignited debates over market integrity, with critics accusing the entity of exploiting unregulated trading environments Crypto Whale Opens New $163M Bitcoin Short After $192M Win^[3].

The whale's earlier success-netting $192 million in profits 30 minutes before Trump's tariff revelation-has drawn scrutiny for its uncanny timing. On-chain analysts and traders argue the position may have accelerated the crash, triggering a cascade of liquidations that wiped over $1.2 billion in capital from Hyperliquid alone Trader Who Made $192M Shorting the Crypto Crash is Betting^[2]. Over 250 wallets on the platform lost "millionaire status" in the selloff Did Trump’s Tariff Trigger A Crypto Purge Or Just A Panic^[5]. The trader's latest bet, placed late Sunday, underscores the volatile dynamics of leveraged crypto trading, where high-risk positions can rapidly amplify gains or losses .

Hyperliquid, a decentralized exchange favored by institutional-sized traders for its speed and liquidity, features Auto-Deleveraging (ADL) mechanisms designed to prevent bad debt during extreme volatility. However, these systems can exacerbate selloffs by forcibly closing profitable positions to cover losses, as seen in the weekend's mass liquidations Trader Who Made $192M Shorting the Crypto Crash is Betting^[2]. Meanwhile, Binance, the world's largest exchange, has denied technical failures during the crisis, attributing the turmoil to a "display issue" and offering $283 million in compensation to affected users Trader who made $192M shorting the crypto crash is doing it again^[1]. Critics, however, point to failed stop-loss orders and token depegging events as evidence of systemic flaws .

The incident has intensified calls for greater oversight in crypto markets. Janis Kluge, a researcher at SWP Berlin, noted, "Crypto people are realizing today what it means to have unregulated markets: Insider trading, corruption, crime, and zero accountability" Crypto Whale Opens New $163M Bitcoin Short After $192M Win^[3]. Observers like MLM, a prominent on-chain analyst, argue the whale's actions "played a huge role" in the crash, with additional pre-announced shorts on Ethereum (ETH) further fueling the downturn Did Trump’s Tariff Trigger A Crypto Purge Or Just A Panic^[5].

Trump's tariff policy has also drawn political backlash. His approval ratings have dipped to 40%, with critics citing ethical concerns over his pro-crypto stance, including his executive order allowing crypto in 401(k) plans and his own meme coin venture. Senator Elizabeth Warren has warned of potential conflicts of interest if Trump profits from crypto-related ventures while in office Crypto Whale Opens New $163M Bitcoin Short After $192M Win^[3].

As the market grapples with the fallout, Bitcoin's price has rebounded slightly to $115,295, but remains below its recent all-time high of $126,080. Traders are closely monitoring funding rates, on-chain flows, and geopolitical developments to gauge whether the crash will serve as a "purge" of excess leverage or signal deeper structural risks . For now, the enigmatic whale's latest move highlights the precarious balance between speculative opportunity and systemic vulnerability in crypto's unregulated frontier.