A prominent Bitcoin holder from the early days of cryptocurrency has made headlines by initiating over $1.1 billion in short positions against Bitcoin (BTC) and Ethereum (ETH) right before President Donald Trump announced a 100% tariff on Chinese goods. This strategic move resulted in an estimated $27 million in unrealized profits as the market experienced a significant downturn.
### Whale Doubles Down 30 Minutes Before Trump Speech
The trader, recognized by blockchain analytics firms as a “Bitcoin OG,” held a substantial 86,000 BTC dating back to 2011. On October 9, he began depositing funds into Hyperliquid to establish significantly leveraged short positions against the leading cryptocurrencies. Following the market decline, the whale’s short positions are now showing an unrealized gain exceeding $27 million.
The trader’s strategy included a 10x leveraged short on 6,189 BTC valued at approximately $752.9 million, with a liquidation threshold set at $130,810. Additionally, he took a 12x leveraged short on 81,203 ETH, worth around $353.1 million and with a liquidation price of $4,589. Speculation grew regarding the possibility of insider information, as the trader increased his short positions just 30 minutes before Trump’s announcement, which triggered a drop in Bitcoin’s value from over $122,000 to below $102,000.
### Major Gains from Strategic Exits
On-chain analyst @mlmabc reported that the whale successfully closed around 90% of his Bitcoin short positions and entirely exited his Ethereum holdings at the market’s lowest point, realizing profits between $190 million and $200 million in a single day. Remarkably, he initiated additional short positions worth nine figures shortly before the market’s sharp decline.
According to Lookonchain data, the whale began building his short positions on October 9, depositing $80 million in USDC into Hyperliquid, followed by more substantial deposits in the days leading up to the market crash. This plunge caused over 1.66 million liquidations within 24 hours, with total losses amounting to $19.33 billion, as reported by CoinGlass. However, Mlmabc suggested that the actual liquidation figures could be significantly higher, potentially between $30 billion and $40 billion.
### Market Collapse and Liquidation Details
The fallout from the market crash revealed that long positions accounted for $16.83 billion in losses, while short positions contributed over $2.49 billion. Bitcoin and Ethereum led the way in liquidations, totaling $5.38 billion and $4.43 billion respectively, followed by Solana and XRP. The largest single liquidation occurred on Hyperliquid, involving an ETH-USDT position worth $203.36 million.
### Satoshi-Era Holder’s Trading History Fuels Conspiracy Theories
This Bitcoin whale’s history dates back to 2011 when he acquired 86,000 BTC during Bitcoin’s formative years. On-chain data indicates he sold 35,991 BTC worth around $4.43 billion starting August 20, using the proceeds to purchase 886,371 ETH valued at $4.07 billion at an exchange rate of 0.0406 on Hyperliquid. Despite his aggressive shorting, the trader still holds 49,634 BTC worth approximately $5.43 billion across four wallets.
Prior to establishing his massive short positions, the whale sold 3,000 BTC for 363.87 million USDC at an average price of $121,291, ensuring he had ample liquidity in stablecoins. He then used $80 million in USDC to open a 6x short on 3,477 BTC valued at $419 million, with a liquidation price set at $140,660. The trader also deposited an additional $50 million into Binance for potential trades.
As he continued to scale his positions on October 10, he deposited another $30 million USDC to open a 12x short on 76,242 ETH valued at $330 million, with a liquidation price of $4,613. Speculation intensified within the community after crypto researcher Maartunn highlighted the potential connections between the whale’s early Bitcoin holdings and possible ties to government entities, suggesting that insider knowledge might have informed the trader of Trump’s impending tariff announcement.
### Accusations of Market Manipulation
Social media became a hotbed for claims of market manipulation, with various analysts deeming the sequence of trades to be one of the most significant insider trading incidents in history. Critics pointed out the uncanny timing of the whale’s position increases right before Trump’s speech, his exits at optimal market bottoms, and the coordinated activity of linked wallets executing similar trades within hours.
### Trump Tariffs Trigger Historic Deleveraging Event
President Trump announced the 100% tariffs on Chinese imports scheduled for November 1, as a response to China’s new export restrictions on products containing rare earth elements. The tariffs also introduced new export controls aimed at critical software industries. Trump hinted at the possibility of reversing the tariffs if China alters its course before the deadline, which could lead to a temporary recovery in the crypto market.
The global cryptocurrency market cap saw a decline of over 9% in just 24 hours, dropping to $3.8 trillion as the sell-off intensified. Bitcoin’s price fell from above $122,000 to around $113,600, erasing all gains made since August before momentarily dipping below $102,000. Ethereum and other major altcoins followed similar downward trends, with some assets suffering losses between 60% to 90% during the three-hour crash that wiped approximately $1 trillion in market value.
Analysts are regarding this event as one of the most severe liquidation episodes of the year. While the whale successfully navigated the market to secure substantial profits, the crash left over 1.66 million traders liquidated and billions in losses still tied up in the market. Amid the ongoing government shutdown, Trump’s approval rating has dropped to 40%, with 86% of Polymarket traders predicting that the shutdown will extend beyond October 15.
