Hyperliquid whale who made $150 million with short bet opens new $160 million short

A Hyperliquid trader, who recently garnered over $150 million in profit from well-timed short bets before a significant crypto market crash, has initiated a new leveraged short position on Bitcoin with a notional value exceeding $160 million. This new trade, involving a $16 million investment at 10x leverage, has already generated over $4 million in unrealized profit. The precise timing of the initial shorts, placed just prior to President Trump's tariff announcement, has sparked controversy and led to disputed allegations by some onchain analysts linking the whale's wallet to Garrett Jin, former CEO of the defunct exchange BitForex.

Analysis

A prominent Hyperliquid trader, who previously profited over $150 million from well-timed short positions on Bitcoin and Ethereum before President Trump's tariff announcement, has initiated a new $160 million notional leveraged short on Bitcoin. This new position, entered at $117,370 with a $16 million investment and 10x leverage, is already showing over $4 million in unrealized profit as BTC trades around $114,430. The initial shorting, executed just one minute before the tariff announcement, fueled speculation regarding potential advance knowledge.

On-chain analysis has drawn a tenuous link between the whale's wallet and Garrett Jin, former CEO of the defunct BitForex exchange, citing a shared Binance deposit address and a 40,000 USDT transfer to "garrettjin.eth." While some analysts dispute a direct connection, suggesting a friend of Jin, these allegations introduce reputational and regulatory risk. Jin's separate Polymarket bet on a Trump pardon for Changpeng Zhao further intertwines political and crypto market speculation.

This aggressive shorting activity and the subsequent market downturn, leading to record liquidations for predominantly long positions, highlight significant volatility and systemic risks within the crypto derivatives market. The pervasive negative sentiment (-0.4) across numerous crypto-related tickers, despite a neutral overall tone, indicates underlying market fragility. This event underscores the outsized influence of large, well-capitalized traders on market dynamics, particularly in highly leveraged environments.

Key Decisions for Investors

• Reassess risk exposure to highly leveraged crypto derivatives, given the demonstrated market manipulation potential and rapid liquidation events.
• Monitor regulatory developments closely, particularly concerning on-chain activity and potential insider trading allegations, as these could impact market integrity and future policy.
• Consider hedging strategies or reducing long positions in Bitcoin and Ethereum, as the prevailing negative sentiment and the presence of large short-sellers suggest continued downside pressure.