Crypto Whale Who Made $192M Shorting the Crash Bets Against Bitcoin Again
The crypto community is buzzing once more as the Hyperliquid whale who earned a staggering $192 million shorting the market last week has returned with another massive bearish wager. The mysterious trader, identified by the wallet address 0xb317, has reopened a $163 million leveraged short position on Bitcoin (BTC), reigniting debate over insider behavior, transparency, and ethics in decentralized finance. The story has become a key topic in current crypto news and among followers of blockchain technology and the crypto pur movement.
The return of the insider whale
Blockchain analytics show that the trader entered the new position on the Hyperliquid decentralized derivatives exchange late Sunday night, using 10x leverage. The short position is already sitting on more than $3.5 million in unrealized profits but faces liquidation if Bitcoin climbs to about $125,500. This comes just days after the same wallet made near-perfectly timed trades, earning $192 million in profit within hours when the crypto market collapsed following former President Donald Trump’s tariff announcement against China.
According to data from HypurrScan, the trader had previously opened huge short positions—an $80 million bet on Bitcoin and $30 million on Ether less than one minute before the tariff announcement. Those positions triggered a record-breaking wave of liquidations across exchanges, pushing BTC prices down by over 10% in a single session.
Speculation of insider activity and manipulation
Because of the precise timing, many market watchers have labeled the trader an “insider whale.” Observers like blockchain analyst @MLM noted that the whale’s last short order went live just 30 minutes before the official tariff statement was made public. Popular YouTuber Coffeezilla even suggested possible pre-announcement knowledge, posting, “The trader shorted exactly one minute before Trump’s tariff tweet what incredible ‘luck.’”
Some analysts believe the whale’s massive short positions may have triggered a liquidation cascade, wiping out over $1.2 billion in positions on Hyperliquid alone. More than 250 accounts reportedly lost their millionaire status after the crash, leading many to question the fairness and structure of leveraged blockchain derivatives markets.
Hyperliquid attracts high-stakes traders
Hyperliquid has quickly become a hub for high-risk traders looking for deep leverage and decentralized anonymity. Whales are depositing millions in stablecoins like USDC to expand positions and hedge against central exchange surveillance. According to recent blockchain data, the same trader added another $40 million in USDC to maintain large short positions across BTC and ETH, signaling they are doubling down on a further market correction.
Meanwhile, other traders are betting the opposite way. A bullish investor recently opened a $11 million long position with 40x leverage, taking advantage of extreme market pessimism to speculate on a rebound. The contrast between overly leveraged shorts and longs underscores how emotionally charged and high-stakes crypto trading has become.
Binance denies involvement amid turbulence
During the chaos, attention briefly turned to Binance after rumors surfaced that its order books malfunctioned amid the price crash. Some users claimed stop-loss functions failed and certain tokens unexpectedly depegged or hit zero. Binance quickly issued a statement clarifying that no system failures occurred, blaming the anomalies on a brief “display issue.” The platform also confirmed it paid out $283 million in compensation to users affected by those assets’ temporary depeg events.
In the aftermath, Binance’s native token (BNB) has staged a strong recovery, gaining 14% in the past 24 hours to surpass $1,300 again. This has provided a slight boost to overall blockchain market confidence, though analysts caution that volatility remains at historic highs.
The bigger picture for blockchain and crypto pur users
For crypto purists, this event raises crucial questions about decentralization, accountability, and insider access within supposedly transparent blockchain ecosystems. The fine line between sophisticated trading and potential manipulation continues to blur as whales wield influence in new decentralized derivatives platforms like Hyperliquid. While blockchain technology provides openness and traceability, it also allows rapid, large-scale moves that can destabilize entire markets without oversight.
Conclusion
The trader’s return to shorting Bitcoin marks another dramatic chapter in the fast-evolving world of crypto derivatives. Whether their actions represent strategic genius, market manipulation, or simple luck remains uncertain but one thing is clear: crypto markets still operate with levels of volatility and risk unseen in traditional finance. As this “insider whale” places new billion-dollar bets, the event serves as both a warning and a testament to the raw, unfiltered power of blockchain-based speculation that continues to dominate global crypto news.
