Key Highlights:
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A trader who earned $192 million from last week’s crypto crash has opened a new $163 million short against Bitcoin on decentralized exchange Hyperliquid.
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The trader’s perfectly timed bet before Trump’s 100% China tariff announcement has fueled speculation of insider access.
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Analysts warn that auto-deleveraging mechanisms on Hyperliquid could amplify market volatility if Bitcoin drops further.
The Whale Returns: A New $163 Million Short on Bitcoin
A crypto trader who pocketed an eye-watering $192 million during last week’s market meltdown has once again taken an aggressive bearish position — this time shorting Bitcoin with $163 million in leveraged exposure, according to on-chain data from Hypurrscan.
The wallet address, identified as 0xb317, placed the new position late Sunday on Hyperliquid, a decentralized perpetuals exchange known for its deep liquidity and speed. The position is reportedly 10x leveraged, with a liquidation level near $125,500, and was already showing a $3.5 million unrealized profit during Monday’s Asian trading hours.
The move comes as crypto markets attempt to recover from a brutal selloff triggered by former U.S. President Donald Trump’s 100% tariffs on Chinese imports, a policy shock that wiped nearly $19 billion off crypto’s total market value within hours.
A Perfectly Timed Trade — Or Something More?
What’s raised eyebrows across the crypto community isn’t just the size of the trade, but its precise timing. The same address reportedly opened its initial short position roughly 30 minutes before Trump’s tariff announcement — an uncanny moment that has led many analysts to question whether the trader had advance knowledge of the market-moving event.
By closing those shorts amid the crash, the trader secured an estimated $192 million profit, one of the largest individual gains ever recorded on-chain from a single directional move.
On-chain analysts have since labeled the entity an “insider whale,” suggesting the wallet’s activity may have contributed to the rapid price collapse as cascading liquidations accelerated the selloff.
“Whether this trader had insider info or just exceptional luck, their timing was extraordinary,” said Julian Park, a derivatives analyst at BlockData Research. “The fact they’re doubling down now suggests they’re anticipating more pain for Bitcoin in the short term.”
Hyperliquid’s Role in a Volatile Market
The platform at the center of this story, Hyperliquid, has quickly risen to prominence among high-frequency and institutional traders seeking decentralized access to perpetual futures. It boasts deep liquidity, transparent order books, and fast execution, features that make it one of the few DeFi exchanges capable of handling large-scale trades.
However, Hyperliquid’s Auto-Deleveraging (ADL) system — a safeguard designed to prevent systemic insolvency — may have amplified the crash. When insurance funds deplete during extreme volatility, ADL forcibly closes profitable positions to offset losses from bankrupt accounts.
While this mechanism ensures platform solvency, it can create self-reinforcing sell pressure. Data from HyperTracker shows that more than 6,000 wallets were affected by ADL-triggered liquidations over the weekend, erasing about $1.2 billion in trader capital on Hyperliquid alone.
Market Sentiment and Strategic Implications
The trader’s reemergence has deepened uncertainty in already fragile markets. Bitcoin (BTC) has been trading near $113,000, down roughly 10% from recent highs, while altcoins continue to show weak recovery momentum.
Some analysts interpret the new short as a contrarian signal, suggesting markets could be near a local bottom if bearish sentiment becomes too crowded. Others argue it reflects broader macro anxiety, with investors hedging against further fallout from trade tensions and tightening liquidity conditions.
“Markets are hypersensitive to policy shocks right now,” said Sophie Kim, head of trading strategy at Seoul-based firm Bitoro Capital. “If the next data points — inflation, tariffs, or Fed comments — come in hawkish, we could easily retest sub-$100K levels.”
A Market on Edge
The trader known as 0xb317 has become a symbol of both precision and paranoia in crypto’s high-leverage ecosystem. As Bitcoin struggles to regain footing and volatility remains elevated, traders are watching closely to see whether this new short will once again prove prophetic.
Whether coincidence, insight, or sheer calculation, the move underscores one truth about today’s crypto markets — in an age of leverage and instant reaction, a single whale can still shake the entire ocean.
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