A trader who pocketed nearly $200 million by betting against Bitcoin just before a major market plunge has doubled down with another massive short position. This move comes amid ongoing volatility in the crypto space, raising questions about the stability of digital assets compared to the resilience of traditional American markets.
The wallet address tied to this trader, known as 0xb317 on the Hyperliquid platform, opened a $163 million short on Bitcoin late Sunday. With 10x leverage, the position has already notched $3.5 million in gains during Asian trading hours, according to data from Hypurrscan. The liquidation threshold sits at $125,500, leaving room for potential profits if Bitcoin’s price dips further.
This isn’t the first time this address has timed the market with eerie precision. Roughly 30 minutes before President Donald Trump’s announcement of 100% tariffs on Chinese imports, the trader initiated a short that yielded $192 million as the crypto market shed over $19 billion in value. That policy aimed to shield American industries from unfair competition, yet it triggered the largest single-day liquidations in crypto history, underscoring how global events can rattle speculative assets while bolstering U.S. economic protections.
On-chain observers have labeled the trader an “insider whale” for the spot-on timing, fueling speculation about possible foreknowledge of the tariff news. Some argue the large short itself may have amplified the downturn, as massive positions can sway thinly traded markets.
Hyperliquid, the decentralized exchange hosting these bets, stands out for its appeal to big players seeking high leverage without centralized oversight. It boasts deep liquidity and rapid execution, but its auto-deleveraging system—designed to prevent platform insolvency—wiped out over 6,000 wallets and $1.2 billion during the recent slide. Such mechanisms reveal the inherent risks in crypto derivatives, where extreme volatility can lead to cascading losses far removed from the steady growth seen in American stock markets or manufacturing sectors.
Broader crypto trading volumes hit a 2025 high of $9.72 trillion in August, with centralized exchanges seeing a 7.58% surge in spot and derivatives activity. Gate exchange jumped 98.9% to $746 billion, claiming fourth place among platforms. Open interest in derivatives climbed 4.92% to $187 billion, signaling heavy speculation that often precedes sharp corrections.
Meanwhile, tokens like Synthetix (SNX) surged 120% in a day, from $1.00 to over $2.20, amid hype for new DeFi features and trading events. Analysts view this as a potential revival for older “dino coins,” but such rallies frequently fizzle, reminding investors of crypto’s boom-bust cycles.
For those prioritizing American economic strength, these developments serve as a cautionary tale. While tariffs and policies defend U.S. jobs and industries, the crypto arena remains a high-stakes gamble prone to external shocks. Traders like this whale thrive on the chaos, but everyday investors might find more security in assets tied to the robust fundamentals of the American economy.
What a giant CROCK of BULLCRAP.
The “crypto whale” caused the crash! LOL
If you idiots with your secret language can’t see that this is all a giant Ponzi scheme by now, absolutely nothing is ever going to wake you up. HODL HODL HODL
The callous greed involved in this monstrous joke is off the charts.
Rob nailed it.
Since when is President Trump “ former President Donald Trump”? Proof reading is important.
It’s not a Ponzi scheme, until it is. You have to know when to hold and know when to walk. I’m not walking quite yet, since there is too much more to gain from all those idiots fueling it.
I may not be the fittest guy in my office, but referring to me as a “whale” is right out.