A trader famous for profiting after shorting Bitcoin and Ethereum before the recent market crash has opened new short positions. Blockchain tracker Lookonchain revealed that the trader re-entered the market at $115,783 per BTC, holding a 3,440 BTC short worth approximately $392.67 million. The current unrealized profit stands near $5.7 million, with a liquidation threshold of $128,030.
Despite Bitcoin rebounding to around $115,000, the trader increased exposure, showing renewed confidence in another downturn. To finance the position, about $80 million in USDC was bridged into Hyperliquid and deployed in the futures market. This move suggests the trader is betting heavily on an extended price decline even as optimism grows across crypto markets.
Market analysts now question whether this is a calculated setup or a coordinated attempt to trigger another collapse. Traders remain watchful of leveraged liquidations that could magnify volatility in the short term.
The wallet behind these trades has become a focal point in crypto circles, widely referred to as the “Trump Insider.” This moniker stems from the trader’s previous timing ahead of a US policy shock. Earlier, the same entity opened huge shorts shortly before Donald Trump’s tariff announcement, which sent crypto markets tumbling and reportedly netted around $160 million in profits.
That earlier success sparked debate about the trader’s access to nonpublic political cues. Yet no evidence has confirmed insider activity, as blockchain data only shows wallet flows and position sizes, not identity or motive.
Now, with the trader again taking major short positions during a recovery phase, observers are raising one critical question: Is another engineered crash underway?
Bitcoin’s volatility has already tested lower levels, dipping below $112,000 at times as broader risk sentiment weakens. The trader’s massive leverage adds another layer of uncertainty, amplifying market fragility as other participants react to rapid price swings.
If the whale’s bearish bet proves accurate, the market could face cascading liquidations from retail and leveraged traders. Price declines often trigger margin calls, forcing exits that accelerate losses and expand volatility. Consequently, investor sentiment could turn defensive, with traders tightening exposure to avoid collateral risks.
However, the strategy is not without risk. Should Bitcoin rally above $125,500, the trader faces a potential liquidation event. The use of heavy leverage makes the position vulnerable to sharp reversals.
In this context, the episode reflects how individual speculative moves can shift market balance. With macro factors like inflation, policy changes, and geopolitical developments still shaping risk appetite, traders are closely tracking the whale’s position. Each adjustment in this high-stakes bet could ripple through Bitcoin’s price structure, testing the resilience of both bulls and bears in a recovering yet unstable market.
Read more: Trump’s Tariffs Not Solely to Blame for Crypto Market Downturn? Analysts Explain
The “Trump Insider” whale has reignited attention across the crypto space by reopening a $392M Bitcoin short on Hyperliquid. With Lookonchain data confirming a 3,440 BTC position, the move suggests renewed bearish sentiment despite recent market recovery. The trader’s past $160M profit before Trump’s tariff announcement raises fresh questions over timing, leverage, and insider influence. Investors should closely watch Bitcoin’s next move as volatility intensifies.