Hyperliquid’s $160M Mega Short Shakes Crypto Markets: Whale’s Perfectly Timed Bet Before Trump’s China Tariff Announcement (October 2025)
- How Did a Trader Perfectly Time a $160M Bitcoin Short?
- Why This Trade Is Squeezing Market Psychology
- Garrett Jin Connection: Coincidence or Insider Play?
- Three Metrics Traders Are Watching Now
- What This Reveals About Crypto Market Structure
- Could This Trigger a Short Squeeze?
- How Professional Desks Are Playing It
- Hyperliquid Whale Short: Your Questions Answered
A mysterious trader on Hyperliquid has placed a staggering $160 million Bitcoin short position with 10x leverage, just one minute before former President Trump's tariff announcement triggered Friday's crypto crash. The whale had previously banked $150 million from perfectly timed shorts. Market makers are now watching three key metrics: open interest, funding rates, and the whale's $123,500 liquidation price. While some speculate about insider connections to ex-BitForex executive Garrett Jin, blockchain analysts caution against jumping to conclusions. This trade reveals how thin liquidity amplifies market moves during volatile periods.
How Did a Trader Perfectly Time a $160M Bitcoin Short?
At exactly 20:49 GMT on October 11, 2025 - sixty seconds before Trump's China tariff tweet - an anonymous Hyperliquid user opened what would become one of the most discussed short positions in crypto history. The whale entered at $117,370 per BTC with $16 million collateral, targeting a liquidation price of $123,500. What makes traders nervous isn't just the size (equivalent to 1,360 BTC at entry), but the eerie precision following their previous $150 million profit from Friday's crash.
Why This Trade Is Squeezing Market Psychology
The position creates a feedback loop: perpetual contract funding rates turned negative (-0.0035% hourly according to CoinGlass), encouraging more shorts. But it's the microstructure impact that worries desks. "When you have $160 million sitting 4.8% below current price," notes BTCC analyst Liam Chen, "it acts like a magnet pulling prices toward liquidation clusters." The whale's break-even sits at $108,630 - meaning they're still profitable even after Bitcoin's 9% weekend bounce.
Garrett Jin Connection: Coincidence or Insider Play?
Blockchain sleuths spotted a 40,000 USDT transfer between the whale's wallet and an address linked to ex-BitForex COO Garrett Jin. ZachXBT quickly tempered speculation: "The only direct evidence is one transaction - this could simply be Jin's poker buddy." For context, Jin left BitForex in 2024 before its regulatory issues. The Hyperliquid team has made no statement regarding the whale's identity.
Three Metrics Traders Are Watching Now
1.Currently at $4.2 billion across exchanges (per CoinMarketCap), up 18% since Friday. New shorts could trigger cascading liquidations.
2.Negative rates (-12% annualized) suggest excessive bearishness that often precedes short squeezes.
3.$120,000-$123,500 contains $380 million in potential short liquidations according to TradingView data.
What This Reveals About Crypto Market Structure
The trade highlights how fragile liquidity becomes during macro events. Friday's $1.2 billion in liquidations (Coinglass) evaporated order book depth. Now, every $10 million trade moves bitcoin 0.8% versus 0.3% pre-crash. "It's like trading in a swimming pool that suddenly became a bathtub," quips veteran trader Markus Johansen. This explains why altcoins saw 2-3x Bitcoin's volatility over the weekend.
Could This Trigger a Short Squeeze?
The whale's position creates a potential "gamma squeeze" scenario. If Bitcoin rallies past $120,000, market makers hedging their exposure would need to buy spot BTC, potentially accelerating gains. However, the 10x leverage works both ways - a move to $123,500 would wipe out the entire $16 million margin. Crypto Twitter remains divided, with bulls pointing to October's historical seasonality (+22% average gain since 2020) and bears noting ETF outflows hit $186 million last week.
How Professional Desks Are Playing It
Institutional traders surveyed by The Block are taking three approaches:
- 42% are reducing leverage and moving to spot positions
- 33% are selling volatility via options (25-30% IV for ATM Oct27 calls)
- 25% are mirroring the whale's short with tighter stops at $121,000
Hyperliquid Whale Short: Your Questions Answered
Who placed the $160M Bitcoin short on Hyperliquid?
The trader remains anonymous, though blockchain analysts have tentatively linked the wallet to former BitForex executive Garrett Jin through a 40,000 USDT transaction. No conclusive evidence exists.
How much profit has this short position made?
As of October 14, the position shows $4.7 million in unrealized gains with Bitcoin trading at $114,200. The whale previously earned $150 million from shorts placed before Friday's crash.
What happens if Bitcoin reaches $123,500?
The entire position WOULD be liquidated, creating $160 million in forced buy orders that could temporarily spike prices. Market makers are closely watching this level.
Why are funding rates negative?
With more traders shorting than longing (especially on Hyperliquid), those holding short positions pay longs to maintain their trades. Current rates equate to -12% annualized.
Is this trade legal?
Unless proven to involve insider information (like advance knowledge of Trump's tweet), such large directional bets are common in crypto markets. Hyperliquid operates in jurisdictions permitting Leveraged trading.
