Hyperliquid News Today: Bitcoin Whale's 1-Minute Short Before Trump Tariff Sparks Insider Trading Debate

A massive short position on Bitcoin and Ethereum by a Hyperliquid trader has ignited speculation of insider trading, with the $160 million leveraged bet opening minutes before U.S. President Donald Trump's October 10 tariff announcement on Chinese imports. The trade, which generated over $3.4 million in unrealized gains, has drawn scrutiny as analysts link it to potential foreknowledge of the market-moving event.

The timing of the short-placed at 20:49 GMT, just one minute before Trump's tweet-has fueled claims of "incredible luck," per onchain investigator Stephen Findeisen (Coffeezilla). Meanwhile, blockchain researcher Eye has drawn connections between the whale's wallets and former BitForex CEO Garrett Jin, who co-founded the now-defunct exchange that collapsed in 2024 after a $57 million loss and fraud allegations. Eye identified a 40,000 USDT transfer linked to Jin's Ethereum Name Service (ENS) address, though critics like ZachXBT argue the evidence remains circumstantial.

The market fallout from Trump's 100% tariff threat was historic. Crypto liquidations surged past $19 billion, with Bitcoin plunging 8.4% to $104,782 and Ethereum dropping 14.2%. Hyperliquid alone reported $1.2 billion in losses, as over 6,300 wallets were liquidated. Some analysts speculate the whale's profit-estimated at $80 million-was amplified by precise timing.

Garrett Jin, meanwhile, has denied any connection to the trades. In a recent Polymarket post, he framed the short as a strategic move and thanked Binance CEO Changpeng "CZ" Zhao for publicly identifying the wallet addresses involved. Jin, who now operates staking platform XHash, has faced ongoing scrutiny for alleged ties to BitForex's collapse and unverified fund sources.

Zhao, who recently served a four-month prison sentence for money laundering, has become an unlikely figure in the saga. Amid the market crash, he announced plans to convert a $1 billion crypto recovery fund into "native assets" like Bitcoin and BNB. The move, intended to support liquidity-strapped projects, has drawn criticism for opaque execution, with funds reportedly pooled in Binance's corporate wallets.

The debate over insider trading underscores broader concerns about transparency in crypto markets. While some analysts dismiss the Trump tariff whale as a coincidence, others highlight the industry's susceptibility to leveraged positions and geopolitical shocks. Zhao's public endorsement of the whale's actions-calling it a "transparency" win-has further polarized the community.

As the market stabilizes, the incident raises questions about the role of large players and regulatory oversight. With Bitcoin trading near $115,000 and volatility persisting, the crypto sector awaits clarity on whether such events mark a new era of strategic trading-or a systemic risk.

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: [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 Linked to Ex-BitForex CEO Garrett Jin: Researcher (https://bitnewsbot.com/hyperliquid-whale-linked-to-ex-bitforex-ceo/)

[3] Was the Whale Who Shorted Before Donald Trump's Tariff ... (https://en.bitcoinsistemi.com/was-the-whale-who-shorted-before-donald-trumps-tariff-announcement-his-son-barron-trump-heres-what-we-know/)

[4] Hyperliquid Whale: Unraveling the BitForex Connection and Garrett ... (https://www.okx.com/en-us/learn/hyperliquid-whale-bitforex-connection)

[5] Did Trump's Tariff Trigger A Crypto Purge Or Just A ... (https://www.forbes.com/sites/digital-assets/2025/10/11/did-trumps-tariff-trigger-a-crypto-purge-or-just-a-panic/)

[10] CZ tweeted that a $1B recovery fund would be moved into 'native ... (https://finance.yahoo.com/news/cz-tweeted-1b-recovery-fund-145125611.html)