Hyperliquid News Today: Crypto's Leverage Risks Laid Bare as Ex-CEO Denies Trump Trade Links

Garrett Jin, a former cryptocurrency exchange CEO linked to a massive $150 million short trade on Bitcoin and Ethereum, has denied allegations of insider trading connected to U.S. President Donald Trump's recent 100% tariffs on Chinese imports. The claims, amplified by Binance co-founder Changpeng Zhao (CZ), emerged after on-chain sleuths traced the trades to Jin's digital footprint, sparking a heated debate over market integrity and leverage in crypto.

The controversy began when pseudonymous analyst "Eye" published data on X linking Jin to a Hyperliquid account that opened a $735 million short position just minutes before Trump's tariff announcement on October 10. This trade, which profited over $150 million as crypto prices plummeted, drew immediate suspicion. Eye's analysis connected Jin's Ethereum Name Service (ENS) domain, "garrettjin.eth," to wallet addresses associated with the trades, while also highlighting his academic and professional history, including his leadership at now-defunct exchange BitForex. CZ amplified the claims by retweeting Eye's post, which garnered over 2 million views, though he noted uncertainty about the findings.

Jin responded on X, asserting, "I have no connection with the Trump family or Donald Trump Jr.-this isn't insider trading," and clarified that the funds used were managed on behalf of clients. He criticized crypto exchanges for offering excessive leverage on volatile assets, arguing that such practices lack safeguards seen in traditional markets like forex. "Exchanges should implement a stabilization fund-like mechanism to provide liquidity support during crises," Jin said, adding that this would restore trust and foster healthier growth.

The timing of the trades has fueled speculation. On-chain investigator ZachXBT questioned the direct evidence, noting that the only confirmed link was a 40,000 USDT transfer to Jin's wallet. Meanwhile, analyst Quinten François dismissed the theory as "too simple to be true," suggesting the connection could be a coincidence. Despite these doubts, the trader's actions-opening a new $16 million leveraged short on Bitcoin with $160 million in notional value-have intensified scrutiny.

The market fallout from Trump's tariffs was historic. Over $19 billion in leveraged positions were liquidated, with Bitcoin dropping below $105,000 and Ethereum losing 21% of its value. Hyperliquid, a decentralized derivatives platform, saw over 6,000 wallets liquidated, erasing $1.2 billion in capital. The event has reignited discussions about the risks of high leverage in crypto, with critics pointing to the cascading effects of forced liquidations.

Jin's BitForex past adds another layer to the controversy. The exchange, which froze withdrawals in 2024 after a $57 million loss, has been accused of past misconduct. While Jin denies direct ties to the Hyperliquid trades, researchers like EyeOnChain have traced his wallet activity to staking contracts and funds linked to BitForex's collapse. Jin has since distanced himself from some projects, including XHash, an institutional staking platform, though connections remain on his Telegram profile.

The debate underscores broader concerns about transparency and accountability in crypto markets. While Jin advocates for regulatory reforms, others, like Hyperliquid co-founder Jeff Yan, have accused centralized exchanges of underreporting liquidations during crises. As the industry grapples with volatility and trust issues, the Trump tariff event has become a flashpoint for calls to address systemic risks.

[1] This is the Full Title of the First News Article (https://www.theblock.co/post/374383/alleged-hyperliquid-whale-denies-trump-ties-thanks-cz-for-doxing-and-pitches-market-stabilization-fund)

[2] 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/)

[4] Trader Who Made $192M Shorting the Crypto Crash is Betting... (https://www.coindesk.com/markets/2025/10/13/trader-who-made-usd192m-shorting-the-crypto-crash-is-betting-against-bitcoin-again)

[7] Why crypto briefly but dramatically crashed when Trump renewed... (https://www.cnn.com/2025/10/13/business/crypto-bitcoin-price-drop-trump-tariffs)

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

[13] Garrett Jin Denies Trump Ties and Criticizes Crypto Leverage... (https://coincentral.com/garrett-jin-denies-trump-ties-and-criticizes-crypto-leverage-in-market-crisis/)

[14] 100,000 BTC Hyperliquid Whale Allegedly Linked to Former... (https://finance.yahoo.com/news/100-000-btc-hyperliquid-whale-083447858.html)