Bitcoin News Today: Whale's $500M Bitcoin Short Timed to Trump Tariff Sparks Debate

A cryptocurrency whale has drawn intense scrutiny after tripling its leveraged short position on Bitcoin to nearly $500 million, capitalizing on a market crash triggered by U.S. President Donald Trump's surprise 100% tariff announcement on Chinese imports. The trader, dubbed the "insider whale" by the crypto community, initially profited $192 million from shorting Bitcoin and Ethereum before Friday's crash and has since escalated its bearish bet to $496 million at 10x leverage, according to data from Hyperliquid's block explorer Hypurrscan .

The whale's latest position, entered at a Bitcoin price of $117,370, carries a liquidation price of $124,270-a level just below the cryptocurrency's recent all-time high of $126,080 . Bitcoin currently trades near $114,430, giving the position over $4 million in unrealized profit. The trader's aggressive timing has fueled speculation of insider knowledge, as their final short was placed at 20:49 GMT, just one minute before Trump's tariff announcement at 20:50 GMT .

The tariff announcement sent shockwaves through crypto markets, triggering record liquidations of $19.3 billion within 24 hours, per CoinGlass data . Long-position traders bore the brunt of the losses, with Bitcoin leading liquidations at $5.37 billion. The whale's bearish strategy contrasted sharply with the majority of traders, who held long positions ahead of the crash.

Blockchain analysts have linked the whale's activity to Garrett Jin, co-founder of the now-defunct exchange BitForex, which collapsed in 2024 after a $57 million loss. A wallet connected to Jin received 40,000 USDT from the whale's address two weeks prior to the short, sparking debates over potential collusion. Jin, however, denied direct ties, stating the funds belonged to clients and that he had no inside information .

While some analysts, including YouTuber Stephen Findeisen (Coffeezilla), labeled the whale's timing "incredible luck," others remain skeptical. Onchain investigator ZachXBT dismissed the BitForex link as speculative, noting only the 40K USDT transfer as a direct connection . Meanwhile, Jin's Polymarket activity-betting on a potential Trump pardon for Binance's Changpeng Zhao-has further muddied the waters .

The whale's influence extends beyond speculation. Two months ago, the same wallet held $11 billion in Bitcoin, underscoring its ability to sway market sentiment. Its recent moves have prompted traders to monitor on-chain data closely, with Hypurrscan serving as a real-time barometer for leveraged positions .

The incident highlights growing concerns over unequal access to information in crypto markets. While Jin denied insider trading, the whale's repeated alignment with macroeconomic events has intensified calls for regulatory scrutiny. "The transparency of on-chain data allows community-driven investigations, but it also exposes vulnerabilities in market fairness," said one analyst .

As Bitcoin hovers near $114,430, the whale's $496 million bet remains a high-stakes gamble. A rally toward $124,270 could trigger massive liquidations, exacerbating market volatility. Conversely, a continued downturn would cement the whale's reputation as one of crypto's most formidable traders .

[1] Bitcoin Whale's $160M Short on Hyperliquid Sparks Insider ... (https://www.cryptotimes.io/2025/10/13/bitcoin-whales-160m-short-on-hyperliquid-sparks-insider-suspicion/)

[2] Hyperliquid Whale Who Timed Trump Tariff Crash Doubles Down ... (https://coincentral.com/hyperliquid-whale-who-timed-trump-tariff-crash-doubles-down-with-new-bitcoin-short/)

[3] HyperLiquid Whale Loads Up Almost $500 Million On New BTC Short (https://cointelegraph.com/news/mysterious-hyperliquid-trader-doubling-down-bitcoin-short)

[4] Hyperliquid whale who made $150 million with short bet opens ... (https://www.theblock.co/post/374290/hyperliquid-whale-who-made-150-million-with-short-bet-opens-new-160-million-short)