Bitcoin Holding Strong, Yet Trump Insider Opens Massive $120M Short Position – New Crash Coming?

A trader dubbed “Trump’s insider” opened a $120-127 million Bitcoin short position at $111,386 ahead of an expected presidential announcement Tuesday, sparking fears of another market crash.

Social media erupted with warnings that the whale, who maintains a 100% win rate, could trigger the same devastation witnessed during October 11’s $19 billion liquidation event.

The trader gained notoriety after opening over $1.1 billion in shorts against BTC and ETH just before President Trump announced 100% tariffs on Chinese imports, generating an estimated $160-200 million in profits as Bitcoin plunged from $122,000 to below $102,000.

Back then, blockchain tracking firm Lookonchain identified the wallet as belonging to a “Bitcoin OG” who held 86,000 BTC from 2011.

Multiple reports claim the trader opened shorts ranging from $120 million to $600 million across BTC, ETH, and SOL ahead of Trump’s 3 PM ET announcement.

The precise timing, just as during the tariff crash, fueled accusations of insider trading and market manipulation.

Bitcoin currently stands at around $112,000, despite the bearish market positioning.

However, the trader’s previous success closing 90% of shorts at exact market bottoms has crypto investors on high alert, with many questioning whether another crash is coming.

Original Whale Trade Generated $200M as Markets Collapsed

The October 11 trade established the whale’s reputation for prescient market timing.

Lookonchain data shows the trader deposited 80 million USDC into Hyperliquid starting October 9, followed by additional deposits totaling tens of millions throughout the week.

The whale’s positions included a 10x leveraged short on 6,189 BTC, valued at $752.9 million, with a liquidation price of $130,810, and a 12x leveraged short on 81,203 ETH, worth $353.1 million, with a liquidation price of $4,589.

The trader doubled down on shorts just 30 minutes before Trump’s tariff announcement.

On-chain analyst @mlmabc reported the whale closed approximately 90% of Bitcoin shorts and completely exited Ethereum positions at the bottom, pocketing between $190 million and $200 million in realized profits within a single day.

The market collapse triggered over 1.66 million liquidations in 24 hours, wiping out $19.33 billion in positions, according to data from CoinGlass.

However, Mlmabc argued that “the real number is likely much higher, somewhere in the $30B-$40B+ range.”

The whale’s identity traces back to the 2011 accumulation of 86,000 BTC. Records show that he sold 35,991 BTC, worth $4.43 billion, starting on August 20 to purchase 886,371 ETH, valued at $4.07 billion.

Fresh Bearish Bets Multiply as Other Whales Join Short Campaign

On October 14, the same trader opened a 3,440 BTC short position worth $392.67 million at $115,783.

Currently, the position is sitting on a $5.7 million unrealized profit, with a liquidation threshold of $128,030.

About $80 million in USDC was bridged into Hyperliquid to fund the position.

Other heavy hitters joined the bearish campaign.

Whale 0x9eec9 holds $98 million in shorts across DOGE, ETH, PEPE, XRP, and ASTER. Whale 0x9263 wagers $84 million against SOL and BTC.

Meanwhile, earlier today, a dormant Bitcoin wallet transferred 2,000 BTC, worth approximately $222 million, into 51 new addresses.

The coins split across multiple wallets haven’t reached exchange addresses, suggesting custodial reshuffling rather than selling intent.

The whales move, and their precision has drawn criticism on the Trump rings.

The Trump family’s crypto empire has now generated approximately $1 billion in pre-tax gains over the past year from memecoins, stablecoins, and DeFi platforms, according to a Financial Times investigation.

The TRUMP and MELANIA coins generated around $427 million, while WLFI token sales fetched approximately $550 million.

Private investors poured billions into Trump-backed ventures, with Chinese entrepreneur Justin Sun investing $75 million in WLFI.

Abu Dhabi’s MGX reportedly provided $2 billion to Binance using a USD 1 stablecoin backed by U.S. Treasuries, which has raised $2.71 billion.

All of these have increased the family’s wealth and net worth.

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