What happened?
A crypto whale nicknamed a “Trump insider” deposited $30M in USDC to Hyperliquid and opened a $76M, 10x-leveraged short on 700 BTC at about $109,133 per coin with a liquidation price near $150,080. This wallet had recently placed even bigger shorts (around 3,440 BTC funded with roughly $80M USDC) and previously made about $160M by shorting ahead of a market-moving political announcement. On-chain data also shows heavy withdrawals from exchanges — roughly 45,000 BTC since early October — while Bitcoin trades near $110k after recent volatility.
Who does this affect?
Derivatives traders, market makers, and institutional desks are directly exposed because a large, highly-leveraged short can shift order books and trigger liquidations. Retail investors and long-term holders face increased volatility risk and may be spooked by suggestions of insider-like timing that could affect market fairness. Exchanges and liquidity providers are also impacted since big outflows reduce available liquidity and make large positions more likely to move prices sharply.
Why does this matter?
A $76M, 10x-leveraged short can lead to a sharp sell-off if the whale is right or a violent short squeeze if the market flips, either outcome amplifying price swings. Lower exchange balances mean less liquidity to absorb big trades, raising the chance of cascading liquidations and bigger intraday moves. That heightened volatility can widen spreads, disrupt pricing across spot and derivatives markets, and make risk management harder for funds and retail traders.