A prominent crypto derivatives trader who made $192 million betting against the market during last week’s flash crash is back with another high-stakes position.
Using 10x leverage, the position is currently showing $3.5 million in profit, though it would be liquidated if BTC climbs to $125,500.
The trader, known by the wallet 0xb317 on the Hyperliquid decentralized derivatives exchange, opened a $163 million leveraged perpetual contract to short Bitcoin (BTC) on Sunday.
Uncanny timing sparks theories
This whale gained notoriety after opening a massive short just 30 minutes before former President Trump announced new tariffs on Chinese imports, an announcement that triggered the $19 billion market liquidation.
Crypto observers have labeled the entity an “insider whale” because of the seemingly perfect timing. Some even speculate the trader may have amplified the recent market cascade.
“The crazy part is that he shorted another nine figures worth of BTC and ETH minutes before the cascade happened,” said observer “MLM.” “And this was just publicly on Hyperliquid, imagine what he did on centralized exchanges or elsewhere.”
The timing of the trades coincided with mass losses: over 250 wallets lost millionaire status on Hyperliquid since the Friday crash, according to HyperTracker.
Over 250 wallets lost millionaire status on Hyperliquid since Fridays crash
— HyperTracker (@CMMHyperTracker) October 12, 2025
Source: https://t.co/DoJt9p7oVn pic.twitter.com/9zlN3qI6TW
Meanwhile, the market also saw bullish activity, including a $11 million 40x leveraged long on Bitcoin, demonstrating that both sides of the market were actively positioning amid extreme volatility.
Regulatory concerns and exchange failures
The recent events have reignited debate about unregulated crypto markets. SWP Berlin researcher Janis Kluge commented,
“Crypto people are realizing today what it means to have unregulated markets: insider trading, corruption, crime, and zero accountability.”
Binance, which was rumored to have contributed to the crash, denied any fault.
The exchange clarified that its core futures and spot engines remained operational, calling the reported “crash” a display issue:
"Between 2025-10-10 20:50 and 22:00 (UTC), global macroeconomic events triggered extreme market volatility. Both institutional and retail users engaged in concentrated sell-offs, causing the cryptocurrency market to experience a collective sharp decline during this period, resulting in highly volatile conditions."
It also offered around $283 million in compensation to traders affected by liquidations involving USDE, BNSOL, and WBETH.
Despite the turbulence, Binance’s native token, BNB, has rebounded strongly, climbing 14% over 24 hours to exceed $1,300, reflecting renewed investor confidence.
High-Stakes crypto volatility
The Hyperliquid whale’s return to the market highlights how volatile and high-stakes crypto trading can be, particularly in decentralized derivatives markets.
While retail traders absorbed the brunt of last week’s $19 billion wipeout, large speculators continue to make multi-million-dollar bets that can influence market sentiment.
The episode serves as a reminder that in crypto, extreme gains and extreme risks often travel hand in hand.
Gunel Ismayilova
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