A prominent crypto whale has made headlines again after reopening a massive short position against Bitcoin, marking a significant market event. Just recently, the trader earned an astonishing $192 million from a well-timed short position, executed shortly before a public statement by former President Donald Trump regarding tariffs.
This time, the whale has entered into a $163 million short position on Bitcoin, using a decentralized derivatives exchange known as Hyperliquid. Late Sunday, the trader leveraged this new position at 10x, which has already seen unrealized profits of around $3.5 million. However, the position carries significant risk, as Bitcoin prices would need to reach $125,500 for a liquidation to occur.
This trader, identified by the address 0xb317, first gained notoriety last week for their remarkable timing, which involved shorting several cryptocurrencies just 30 minutes before Trump announced tariffs that sent the market into a downward spiral. This strategic move has led many in the crypto community to level accusations of insider trading, dubbing the trader an “insider whale.” Observers like crypto analyst MLM have indicated that the trader’s actions may have contributed to widespread liquidations over the weekend, resulting in losses for over 250 wallets on the same exchange.
While bearish sentiment prevails for many, there are signs of contrasting market activity. One trader reportedly took a long position of $11 million on Bitcoin with a leverage of 40x, speculating on a potential market rebound following the chaotic trading period.
Amid this volatility, the lack of regulatory oversight in the decentralized trading space has reignited discussions about market integrity. Janis Kluge, a researcher at SWP Berlin, highlighted the implications of unregulated markets, pointing out the increasing risks of insider trading and corruption.
Adding to the broader concerns, Binance, one of the largest crypto exchanges, is facing scrutiny over potential system issues during the recent market crash. Numerous traders reported failed stop-loss orders and unexpected liquidations. However, Binance denied any technical faults and attributed the issues to what they described as a “display problem,” assuring users that their core systems were fully operational. The exchange has since committed to compensating affected users, offering a substantial $283 million in compensation for those impacted by collateral asset depegging.
In a related political context, Trump’s approval ratings have hit new lows, gathering only 40% support according to a recent Reuters/Ipsos poll. This decline comes amid an ongoing government shutdown, with Trump blaming Democrats for the impasse, raising questions about the influence of his administration’s policies, including his pro-crypto stance, on the market.
As eventful developments continue to unfold within the crypto space, the intersection of market dynamics and political events remains a focal point of scrutiny and discussion.
