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A significant crypto derivatives gambler that recently earned $192 million wagering on the crypto market with a oddly timed short has initiated additional bearish positions.
The whale trader (0xb317) on the Hyperliquid decentralized derivatives platform has commenced a $163 million leveraged perpetual contract to short Bitcoin (BTC) on Sunday.
The 10x leveraged position currently stands at $3.5 million in profit, but it will be liquidated if BTC hits $125,500.
The entity garnered attention from the crypto community after establishing a short position merely 30 minutes prior to Trump’s tariff announcement on Friday, which caused the crypto market to plunge but secured them $192 million in gains.
“Insider whale” accused
Some speculate that the whale themselves triggered a massive leverage flush that devastated crypto markets over the weekend.
“The astonishing part is that he shorted another nine figures worth of BTC and ETH just moments before the cascade unfolded,” remarked observer “MLM,” who added, “And this was just publicly on Hyperliquid; imagine what he might have done on CEXs or elsewhere.”
“I’m fairly certain this individual played a substantial role in today’s events.”
Related: Crypto derivatives funding rates decline to 3-year lows: A bullish indicator?
More than 250 wallets lost millionaire status on Hyperliquid since Friday’s decline, reported HyperTracker on Sunday.
Concurrently, another more bullish trader established a 40x leveraged $11 million long position in Bitcoin.
“Crypto enthusiasts are coming to understand today what it signifies to have unregulated markets: insider trading, corruption, crime, and complete lack of accountability,” noted SWP Berlin researcher Janis Kluge.
Binance denies involvement in market collapse
There have also been claims that Binance might have contributed to the collapse, as its own order books and market maker purportedly failed, stop-losses were not executed, traders were liquidated en masse, and several tokens reportedly depegged or crashed to zero.
However, the exchange issued a statement to users asserting that there was no collapse because it was a “display issue.”
“We are aware of market speculation regarding the causes of this event, with some attributing it to the actions of the Binance platform,” the company declared on Sunday.
It confirmed that during the incident, the core futures and spot matching engines and API trading “remained operational.”
Binance denied that the depegging of USDE, BNSOL, and WBETH caused the market crash but offered around $283 million in compensation to traders holding these assets as collateral who faced liquidation.
The Binance exchange’s native token, BNB (BNB), has rebounded strongly, climbing 14% in the past 24 hours to exceed $1,300 again.
Magazine: Bitcoin’s ‘macro whiplash,’ Shuffle suffers data breach: Hodler’s Digest
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