What happened? EyeOnChain says the Hyperliquid whale is allegedly linked to former BitForex CEO Garrett Jin who moved and sold huge amounts of BTC.
On-chain investigators traced ENS names and wallet flows and claim the whale controls over 100,000 BTC and moved billions in recent months. The whale reportedly sold more than $4.23 billion in BTC to buy ETH, staked huge amounts through XHash, and opened a $735 million BTC short on Hyperliquid. EyeOnChain links some of these flows back to withdrawals around the BitForex collapse, though Jin has denied ownership and says the funds belong to clients.
Who does this affect? This touches traders, Hyperliquid users, BitForex victims, exchanges, and institutional players.
Traders and liquidity providers on spot and derivatives markets could face sudden price moves and forced liquidations if these large positions are unwound. Victims and creditors of the BitForex exit-scam allegations may see renewed attention to asset tracing and recovery efforts, and users staking via XHash could face reputational fallout. Exchanges, market makers, and institutional investors will also feel the impact through heightened counterparty risk and possible changes to margin and listing policies.
Why does this matter? Large, opaque on-chain moves and alleged ties to an exit scam can drive volatility and push tighter market and regulatory scrutiny.
Massive sales and big short positions by a single whale can spike volatility, trigger cascading liquidations, and briefly distort price discovery across BTC and ETH markets. The alleged connection to a past exchange exit scam raises questions about provenance of funds, which can accelerate calls for stronger due diligence, on-chain transparency, and stricter exchange reporting. In practice, expect wider price swings, higher hedging and custody costs for institutions, and faster regulatory attention on centralized and non-custodial staking services.