Alleged Flash Crash Insider Denies Trading Allegations

Alleged flash crash insider denies insider trading and opens a new $340 million Bitcoin short. A whale who profited immensely by shorting Bitcoin and Ethereum before Trump’s tariff announcement is again betting against Bitcoin.

Alleged Flash Crash Insider Denies Accusations

The trader, operating on Hyperliquid, made headlines last week by earning close to $200 million through strategic shorts on Bitcoin (BTC) and Ethereum (ETH). This move coincided with President Trump’s announcement of 100% tariffs on Chinese goods, which triggered a significant market downturn. Despite being labelled a “Trump insider whale” by blockchain data firm Arkham Intelligence, the trader firmly denies any connection to the Trump family.

BREAKING: TRUMP INSIDER WHALE IS NOW SHORT $340M $BTC

The HyperUnit Bear Whale who shorted $700M of $BTC and $350M of $ETH right before Friday’s market crash (making ~$200M total) just deposited $40M USDC to HL and shorted another $127M $BTC.

He is now short $300M $BTC and has… pic.twitter.com/b2rpzmkofZ

— Arkham (@arkham) October 13, 2025

The Ethereum address ending in “7283ae” deposited $40 million in USDC to Hyperliquid on Monday. This was used to establish a 10x leveraged short position on Bitcoin, valued at approximately $340 million. The position currently yields around $700,000 in unrealised profits.

Inside the Whale’s Strategy

The whale’s timing has raised eyebrows. On Friday, the same wallet deposited $80 million in USDC to Hyperliquid via Hyperunit, opening about 3,700 BTC shorts worth around $450 million. This was just before Bitcoin’s steep drop from over $125,000 to below $102,000, resulting in $19 billion in crypto liquidations.

There is an entity which opened a $440M BTC short position on Hyperliquid a few minutes ago

This is the same entity that was in the news for swapping billions of dollars to ETH on Hyperliquid a few weeks back. Although they are $440M short, they still own $5.64B BTC pic.twitter.com/0GRIUWxy72

— Conor (@jconorgrogan) October 9, 2025

Conor Grogan, a blockchain researcher, linked the account to a whale known for swapping millions of BTC for ETH earlier this year. Former BitForex CEO Garrett Jin confirmed a connection to the account but insisted it was a “clients’ fund.” Pseudonymous sleuth “Eyeonchains” flagged the connection, which was amplified by Binance founder Changpeng Zhao.

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.

— Garrett (@GarrettBullish) October 13, 2025

Bitcoin has modestly rebounded to $115,796, still down 8% on the week. Ethereum has risen nearly 4% in the last 24 hours to $4,284, down 9% from last week.

This article does not constitute financial advice.