Whale Trader Returns With $163 Million Bitcoin Short
A high-profile trader on Hyperliquid, identified by wallet 0xb317, has once again drawn attention across the crypto market by opening a $163 million short position on Bitcoin. The move comes just days after the same trader reportedly earned $192 million from a perfectly timed short placed minutes before Trump’s tariff announcement, which triggered a rapid market collapse.
According to blockchain analytics, the new position — a 10x leveraged perpetual contract — is already sitting on about $3.5 million in unrealized profit, but faces liquidation if Bitcoin surpasses $125,500. With BTC currently trading around $115,400, the trader’s bet signals expectations of further downside pressure in the near term.
Community Suspects Insider Knowledge
The timing of these trades has led to widespread speculation that the whale may have had advance knowledge of market-moving events. Several observers have dubbed the entity an “insider whale,” noting the precision of their previous positions.
“The crazy part is that he shorted another nine figures of BTC and ETH minutes before the cascade happened,” said trader MLM on social media. “Imagine what positions he might have on centralized exchanges we can’t see.”
More than 250 wallets reportedly lost millionaire status on Hyperliquid during last week’s crash, underscoring the massive scale of liquidations triggered by cascading leverage.
Concerns Over Unregulated Markets Intensify
“Crypto traders are realizing what unregulated markets really mean — insider trading, manipulation, and zero accountability,” warned Janis Kluge, a researcher at SWP Berlin. The comment reflects growing anxiety among investors about transparency in decentralized derivatives platforms, which have become increasingly popular for high-leverage speculation.
While some analysts argue that such volatility is an inherent feature of open crypto markets, others fear that unchecked whale activity could undermine investor confidence at a critical time when regulatory scrutiny is tightening worldwide.
Binance Denies Role in Market Meltdown
Rumors also surfaced suggesting that Binance may have contributed to the recent market crash due to technical issues in its order books and failed stop-loss executions. However, the exchange denied the claims, stating it was merely a “display issue” and that its core trading systems remained operational.
Binance has since offered $283 million in compensation to traders whose positions were unfairly liquidated due to collateral depegging events involving USDE, BNSOL, and WBETH. The exchange’s native token BNB has rebounded sharply, rising 14% in 24 hours to reclaim levels above $1,300.
With one trader reportedly profiting more than $190 million in a single week, market watchers are closely monitoring the whale’s latest positions. Whether this is a repeat of last week’s perfectly timed short or a risky overreach remains to be seen — but one thing is clear: crypto’s biggest speculator is betting heavily that the storm isn’t over yet.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.