Hyperliquid Trader Expands Bitcoin Short to $496M With 10x Leveraged Bet
A mysterious trader in the Hyperliquid market has significantly increased their Bitcoin short position to around $496 million, employing 10x leverage this week. The decision comes after a prior profit estimate ranging from $160 million to $192 million amid the market downturn caused by Trump’s tariff announcement.
On-chain data from Hypurrscan indicates that the trader has consistently raised their exposure over the course of two days, solidifying a bearish outlook on both Bitcoin and Ethereum.
Position Details Unveil Bold Market Approach
The trader currently holds a position of 3,440 BTC, with a liquidation price close to $124,270, indicating a strong belief in ongoing downward pressure. Their earlier contribution consisted of $163 million, which was subsequently enhanced by an extra $80 million in USDC margin capital.
This approach represents yet another notable wager against the cryptocurrency market. Experts observe that the trader’s bold use of leverage suggests either knowledge of insider information or a strategic approach to market timing.
Trader Gains Attention for Timely Shorts Before $30B Crypto Market Crash
The trader initially captured worldwide interest by accurately shorting Bitcoin and Ethereum just moments before the market downturn on October 11. The subsequent market decline wiped out almost $30 billion from the cryptocurrency sector in less than a day.
Observers noted that the trader initiated the initial short position just under an hour prior to Trump’s tariff speech, igniting speculation about potential insider information.
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Blockchain Analysts Trace Wallet Activity to Ex-BitForex Chief Garrett Jin
Investigators within the community have established a connection between the Hyperliquid wallet and Garrett Jin, the ex-CEO of the now-defunct exchange BitForex. Although certain blockchain analysts suggest there are similarities between wallets, Jin has refuted any personal involvement.
In a recent statement on X, Jin emphasized that the funds in question are owned by his clients and refuted claims of insider trading, asserting that he has no ties to the Trump family or any associated entities.
More Hyperliquid Whales Join the Bearish Trend
Two other notable whales have adopted a similar strategy, establishing approximately $182 million in short positions across key assets. A wallet known as 0x9eec9 contains $98 million in shorts aimed at DOGE, ETH, PEPE, XRP, and ASTER.
A second whale, identified as 0x9263, holds $84 million in open shorts on SOL and BTC, indicating a unified bearish outlook among the exchange’s elite trading accounts.
Bitcoin Struggles to Hold Gains as High Open Interest Fuels Volatility
Over the weekend, Bitcoin saw a brief surge to $115,000 but soon faced renewed selling pressure as new short positions emerged. As of the latest update, BTC is trading at approximately $114,000, with open interest staying at a high level.
Experts caution that ongoing whale shorting activity may hinder recovery efforts and promote ongoing volatility in the wider market during October.
Hyperliquid Positions Strengthen as Market Sees Surge in Put Option Activity
Recent market data from leading derivatives platforms indicates a rising interest in hedging instruments and protective options in the aftermath of the crash. Traders are actively buying puts as uncertainty increases.
The primary Hyperliquid whale’s short position currently reflects an unrealized profit of approximately $5.7 million. If prices fall below $110,000, the potential return on the position could increase considerably, heightening bearish sentiment throughout the crypto markets.
