The Enigmatic Bitcoin Whale and the Unfolding Cryptocurrency Drama
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The Unraveling Mystery Behind a Bitcoin Whale
The cryptocurrency community is abuzz following a revelation by Changpeng “CZ” Zhao that has placed a mysterious on-chain event at the forefront of Bitcoin discussions. This development centers around an investigation suggesting that a single trader on the Hyperliquid platform, rumored to control over 100,000 Bitcoin, may have both triggered and profited from a recent market upheaval. CZ’s post on X highlighted this intrigue, quoting a detailed 12-part thread by the anonymous researcher Eye, linking the “Hyperliquid/Hyperunit whale” to former BitForex CEO Garrett Jin.
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Unmasking the Bitcoin Whale
The whale’s timing and profit-making are undisputed. Various market analytics indicate that the trader’s short position on Hyperliquid, initiated just before news of U.S.–China tariffs, was closed with a substantial profit of approximately $192 million. Subsequently, a fresh Bitcoin short worth around $160 million was reportedly opened.
Attribution and Analysis
Eye’s investigation provides a trail of transactions. The whale allegedly shifted over $4.23 billion in Bitcoin into Ethereum on Hyperliquid through both spot and perpetual trades, with more than 570,000 ETH being staked. This led to interactions with a custom deposit contract.
Eye further tracks the funding for an infamous Bitcoin short of roughly $735 million through a series of intermediary wallets, ultimately tracing back to a Binance deposit address. This address is linked to an ENS identity, “ereignis.eth,” which Eye claims connects to “garrettjin.eth” and Garrett Jin’s public X account.
Garrett Jin’s Response
Jin has reacted to these allegations, acknowledging his identity as the person under scrutiny while refuting the more damning accusations. He clarified: “Hi @cz_binance, thanks for sharing my personal and private information. To clarify, I have no connection with the Trump family or @DonaldJTrumpJr — this isn’t insider trading.”
Jin’s Market Insights
Jin offered a multi-faceted explanation for his team’s bearish stance before the market shift, citing a combination of macroeconomic factors, cross-asset correlations, and structural leverage indicators rather than any insider information. According to Jin, technical analysis pointed to overbought signals across U.S. tech stocks, A-shares, and major cryptocurrencies, which traditionally exhibit high positive correlation. His models had issued “risk alerts” amid escalating U.S.–China trade tensions since late September.
Jin argued that excessive retail leverage on non-cash-flowing crypto assets could lead to inevitable liquidity spirals. He suggested that exchanges consider implementing stabilization fund-like mechanisms, similar to those in U.S. equities, to provide liquidity support and mitigate future market collapses.
As of the latest update, Bitcoin is valued at $114,533.
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