|

Trader who made $192M shorting the crypto crash is doing it again

A huge crypto derivatives speculator that recently made $192 million betting on the crypto market with a curiously timed short has opened up more bearish positions. 

The whale trader (0xb317) on the Hyperliquid decentralized derivatives exchange has opened a $163 million leveraged perpetual contract to short Bitcoin (BTC $115,295) on Sunday.

The 10x leveraged position is currently valued at $3.5 million in profit, but it will be liquidated if BTC reaches $125,500.

The entity attracted attention from the crypto community after opening a short position just 30 minutes before Trump’s tariff announcement on Friday, which sent the crypto market plummeting but netted them $192 million in profits.

Insider whale opened another big short on Sunday. Source: Hypurrscan

“Insider whale” blamed 

The entity is being labeled an “insider whale” by the crypto community due to the uncanny timing of the trades, opening minutes before a major announcement.

Some theorize that the whale itself caused a massive leverage flush that crushed crypto markets over the weekend.

“The crazy part is that he shorted another nine figures worth of BTC and ETH minutes before the cascade happened,” said observer “MLM,” who added, “And this was just publicly on Hyperliquid, imagine what he did on CEXs or elsewhere.”

I’m pretty sure this guy played a huge role in what happened today.

Over 250 wallets lost millionaire status on Hyperliquid since Friday’s crash, reported HyperTracker on Sunday. 

Meanwhile, another more bullish trader opened a 40x leveraged $11 million long position in Bitcoin

“Crypto people are realizing today what it means to have unregulated markets: Insider trading, corruption, crime, and zero accountability,” commented SWP Berlin researcher Janis Kluge. 

Binance denies role in market meltdown

It has also been suggested that Binance may have played a role in the meltdown, as its own order books and market maker reportedly failed, stop-losses didn’t execute, traders were liquidated en masse, and several tokens reportedly depegged or crashed to zero. 

However, the exchange issued an update to users claiming that there was no crash because it was a “display issue.” 

“We are aware of speculation in the market regarding the causes of this event, with some focusing on the role of the Binance platform,” the company stated on Sunday. 

It confirmed that during the event, the core futures and spot matching engines and API trading “remained operational.”

Binance denied that the depegging of USDE, BNSOL and WBETH caused the market crash, but offered around $283 million in compensation to traders holding these assets as collateral who were liquidated.

The Binance exchange’s native token, BNB (BNB $1,355.76), has recovered strongly, surging 14% over the past 24 hours to surpass $1,300 again. 

Author

Cointelegraph Team

Cointelegraph Team

Cointelegraph

We are privileged enough to work with the best and brightest in Bitcoin.

More from Cointelegraph Team
Share:

Editor's Picks

Ripple Price Forecast: XRP recovery dims as demand cools
Ripple (XRP) maintains narrow range trading on Monday, with support at $1.10. The token's upside remains largely constrained, as major moving averages trend downward, aligning with low demand in both the institutional and retail markets.
Crypto Today: Bitcoin, Ethereum, XRP hold key support as US and Iran agree to halt strikes
Bitcoin (BTC) maintains a neutral-to-bullish outlook, trading above $65,000 on Monday. Ethereum (ETH) is approaching the key supply and inflection point $2,000, while Ripple (XRP) hovers slightly above $1.10, underscoring a marginal improvement in the broader cryptocurrency market sentiment.
Shiba Inu Price Forecast: The three factors driving SHIB's mystery rally
Shiba Inu (SHIB) price is down 3% on Monday, reflecting a potential profit-driven pullback after rising over 25% over the last two days. The mystery rally in SHIB has outpaced the minor recovery seen in other meme coins, with data suggesting it is linked to supply burns, the Korean market demand, and ecosystem expansion.
Bitcoin options traders are dropping their hedges going into the Fed meeting
Bitcoin's options market has turned notably less defensive over the past month, unwinding the downside protection traders built up in June just as the Federal Reserve prepares to meet.
Bitcoin: BTC holds firm, but the $100 Oil threat could change the game
Bitcoin (BTC) is modestly recovering, trading at $65,400 on Friday and holding firmly above the key support zone. US-listed spot Bitcoin Exchange Traded Funds (ETFs) supported BTC’s modest recovery as they continued to attract institutional inflows through Thursday, pointing to the third consecutive week of inflows.