How an anonymous wallet profited from the crypto chaos
An anonymous wallet (0xb317) on the Hyperliquid derivatives exchange reportedly earned a $192-million profit within just a few hours during a period of sharp market volatility.
As Bitcoin (BTC) and Ether (ETH) prices fell sharply, many traders were hit with liquidations that erased more than $1 billion in leveraged positions. During the sell-off, one trader managed to time a short that paid off in a big way. Whether it was luck, timing or experience isn’t clear.
The wallet’s timing, just minutes before a US tariff announcement that triggered the market drop, has fueled speculation about insider knowledge or market manipulation. The incident highlights the significant influence of high-leverage trading in decentralized finance (DeFi). It also reveals the complex reality of modern crypto markets, where anonymous large-scale traders can move billions and shape market sentiment with a single trade.
How the US trade war news triggered massive crypto market liquidations
The market meltdown began shortly after the US administration unexpectedly announced it would impose 100% tariffs on Chinese imports, which caught investors off guard. The news sent shockwaves through global markets.
The tariff announcement slashed stock prices, caused sharp swings in derivatives and pushed cryptocurrencies into a steep decline. Within hours, Bitcoin’s value fell sharply, triggering widespread liquidations across exchanges. Still, vulnerabilities in the crypto market had been building well before the tariff news broke.
The perpetual futures market was overloaded with open interest and excessive leverage, creating a delicate situation where even a small shock could trigger a wave of margin calls.
In this context, Hyperliquid, a decentralized derivatives platform, stood out. Unlike centralized exchanges (CEXs) with tighter controls, Hyperliquid’s open structure made it a preferred venue for bold, high-stakes trades by major traders.
Did you know? Some traders short crypto to hedge their long-term holdings. By betting against price dips, they can protect profits during volatile periods. It’s like taking out insurance on their portfolio, letting them stay invested even when markets turn shaky.
Breaking down the $190-million onchain profit
Blockchain data traced the now-famous trade to wallet “0xb317,” which opened a massive short position just before the US tariff announcement that reportedly crashed the crypto markets.
On Hyperliquid, the trader placed a $208-million cross-margin perpetual short with 20x leverage. The position was entered at around $116,800, with a liquidation level near $121,000. As Bitcoin’s price fell, the trader’s unrealized profit topped $190 million — one of the most successful onchain short trades ever recorded.
However, the trade had broader consequences. More than 6,300 accounts took losses, over 1,000 wallets were completely liquidated, and total losses exceeded $1.23 billion. Hyperliquid’s auto-deleverage mechanism amplified the decline, adding to the selling pressure.
Within hours, the trader’s wallet position was deep in profit. It remains unclear whether the position was fully closed or partially maintained, leaving followers guessing about the trader’s timing and strategy.
Did you know? A large short position can amplify selling pressure, triggering a cascade of liquidations when prices drop quickly. This creates a domino effect in which each wave of liquidations drives prices even lower.
Wallet “0xb317” launches a new $163-million short against Bitcoin
Just days after reportedly earning $192 million, wallet “0xb317” entered another major short trade. On Oct. 12, 2025, the trader opened a $163-million leveraged position, betting against Bitcoin’s price.
The trader used roughly 10x leverage, with an entry price near $117,369 and a liquidation level at $123,510. The position leaves only a small margin, just a few thousand dollars above the entry, before hitting liquidation risk, reflecting both confidence and strategic risk management.
The execution suggests a deep understanding of market timing and liquidity dynamics. The trader appears to have strong insight into market movements and economic events, which allows them to consistently capitalize on volatility with the right timing and scale.
Success, systemic risk and the perils of decentralized leverage
The crypto community is divided over wallet 0xb317’s $192-million short trade. Some see it as a remarkable display of market skill, while others believe it was simple luck.
A section of the crypto community believes the anonymous trader’s success stems from skillfully reading onchain data, derivatives positions and market sentiment. Others, however, attribute the outcome to luck, arguing that random events can sometimes align with major global developments.
The trade’s timing, mere minutes before the US tariff announcement, sparked speculation about insider knowledge or front-running. Verifying such activity in decentralized markets is nearly impossible. Some also argue that the large short position may have deepened the market crash by triggering a wave of liquidations that intensified the sell-off.
Despite the trader’s success, significant risks remain in short trading. A sudden market rebound could trigger margin calls, slippage or liquidation, showing how quickly fortunes can change in the high-stakes, leveraged world of crypto trading.
Did you know? Short traders often use leverage, which means borrowing funds to amplify returns. While a 20x short can boost profits, it also magnifies losses. A small 5% move against the trader can wipe out the entire position, showing that leverage is both thrilling and dangerous.
Accountability in anonymity: The legal and ethical challenges of the $192-million short
The $192-million short trade has sparked renewed discussions over the integrity of the largely unregulated cryptocurrency market. It also highlights the wide gap between anonymous large-scale traders, or “whales,” and smaller retail participants.
The $192-million short trade not only marks a major profit but has also sparked broad discussion about the need for stronger oversight, transparency and accountability in largely unregulated cryptocurrency markets. In traditional finance, compliance with insider-trading and market-abuse laws is standard, but such checks are still evolving in the crypto space.
For smaller traders, the event serves as a reminder of how high leverage and limited capital can lead to severe losses during volatile periods.
The incident also raised concerns about decentralized derivatives platforms and their ability to handle large trades without causing market instability. It showed that even with safeguards like auto-deleverage systems and insurance funds, these platforms can still struggle under extreme conditions.
The trade has also prompted both ethical and legal questions. If market manipulation occurs, who can be held accountable in an anonymous market? Regulators may need to monitor trader activity more closely, particularly among whales. Developing stronger risk-management tools could also help reduce the risks tied to such situations.
Source: https://cointelegraph.com/explained/how-an-anonymous-trader-made-192m-shorting-one-of-the-biggest-crypto-crashes?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
