What happened?
A Satoshi-era Bitcoin whale opened over $1.1 billion in highly leveraged short positions on BTC and ETH right before President Trump announced 100% tariffs on Chinese imports, triggering a market crash. The tariff news sent Bitcoin from above $122,000 to briefly below $102,000 and sparked a massive deleveraging that wiped out billions and liquidated about 1.66 million traders. The whale then closed most shorts near the bottom, turning unrealized gains into roughly $190–$200 million in realized profit while many others suffered heavy losses.
Who does this affect?
Retail and leveraged traders were hit hardest, with over a million liquidations and billions in losses concentrated in long positions across BTC, ETH and major altcoins. Derivatives platforms and exchanges like Hyperliquid saw huge single-position liquidations and liquidity stress that amplified the crash. The event also affects institutional players, long-term holders, and market confidence as people question whether insider info or coordinated moves played a role.
Why does this matter?
This episode raises the risk of increased volatility and contagion in crypto markets, showing how a single large player can spark massive liquidations and rapid price swings. It could prompt tighter regulation, more scrutiny of on-chain trading activity, and demands for better risk controls at exchanges, which would change where and how leverage is offered. For the market, that means short-term uncertainty, potential outflows from speculative leverage, and a longer-term hit to trust and price discovery that could weigh on crypto asset prices.