A prominent crypto derivatives trader who recently profited $192 million from a short position in the crypto market has initiated further bearish strategies.
The trader known as (0xb317) on the Hyperliquid decentralized derivatives platform has taken out a $163 million leveraged perpetual contract to short Bitcoin (BTC) this past Sunday.
This 10x leveraged position currently stands at $3.5 million in profit, but it risks liquidation if BTC escalates to $125,500.
The trader gained significant attention within the crypto community after establishing a short position just half an hour prior to Trump’s tariff announcement on Friday, which triggered a sharp decline in the crypto market, ultimately yielding them $192 million in gains.
“Insider whale” accused
Some speculate that the whale may have triggered a massive leverage flush that severely impacted crypto markets over the weekend.
“The shocking part is that he shorted another nine figures’ worth of BTC and ETH just moments before the drop,” remarked observer “MLM,” who added, “And that was just what was publicly visible on Hyperliquid; imagine the actions on CEXs or other venues.”
“I’m quite certain this individual had a major influence on today’s events.”
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Since Friday’s crash, over 250 wallets have lost millionaire status on Hyperliquid, reported HyperTracker on Sunday.
In contrast, a more optimistic trader established a 40x leveraged long position of $11 million in Bitcoin.
“Crypto enthusiasts are coming to terms with what unregulated markets really entail: Insider trading, corruption, crime, and a complete lack of accountability,” commented Janis Kluge, a researcher from SWP Berlin.
Binance refutes involvement in market crash
There are also claims that Binance might have contributed to the turmoil, as its order books and market-making functions reportedly failed. Traders experienced mass liquidations, and several tokens allegedly depegged or fell to zero.
However, the exchange released a statement to users asserting that the incident was mischaracterized as a crash, attributing it to a “display issue.”
“We are aware of the market speculation surrounding this event, with some attributing blame to the Binance platform,” the company stated on Sunday.
They confirmed that the main futures and spot matching engines and API trading “remained functional” throughout the incident.
Binance denied that the depegging of USDE, BNSOL, and WBETH triggered the market downturn but has offered approximately $283 million in compensation to traders liquidated while holding these assets as collateral.
BNB (Binance’s native token) has made a strong recovery, gaining 14% over the past 24 hours to exceed $1,300 once more.
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