The Hyperliquid whale short describes a large trader on the Hyperliquid derivatives platform who opened a $163 million 10x leveraged short on Bitcoin after earlier realizing $192 million from a timed short; the trade has prompted community allegations of insider activity and an exchange response from Binance.
Large 10x $163M short opened on Hyperliquid, following a prior $192M profit.
Community members allege potential insider timing; Binance has publicly denied platform-triggered failures.
Reported impacts: 250+ wallets lost millionaire status on Hyperliquid; Binance offered roughly $283M in compensation for affected collateral positions.
Hyperliquid whale short: $163M 10x BTC short after a $192M timed trade—read COINOTAG report for verified details and market impact.
Published: 2025-10-13 | Updated: 2025-10-13 | Author: COINOTAG
What is the Hyperliquid whale short?
The Hyperliquid whale short is a large leveraged perpetual contract opened by a single on-chain entity on the Hyperliquid derivatives exchange: a 10x, $163 million short position on Bitcoin. The position followed a separate, previously reported short that generated an estimated $192 million in profit and has drawn intense scrutiny from market participants.
The entity (wallet 0xb317) currently shows the 10x position at an unrealized profit and carries a liquidation threshold near $125,500 for BTC. Reporting and on-chain trackers indicate the account executed these trades on Hyperliquid; community observers have raised questions about timing and market impact.
Insider whale opened another big short on Sunday. Source: Hypurrscan
Did the trades involve insider activity or market manipulation?
Allegations of insider activity are emerging within the crypto community but remain unproven. Observers point to the timing — a large short opened minutes before a major public announcement by a political figure — as unusual. On-chain data confirms the trades; independent trackers such as HyperTracker and Hypurrscan have documented wallet movements and position sizes as plain-text references.
Expert commentary remains cautious. Janis Kluge, researcher at SWP Berlin, is quoted by market observers saying the episode highlights risks in unregulated markets, including potential insider trading and lack of accountability. These are community-sourced observations and do not constitute legal findings. Official exchange statements and forensic analysis would be required to substantiate claims of wrongdoing.
Market impact and exchange responses
The short and subsequent market moves coincided with a sharp BTC downturn that resulted in sizable liquidations across derivatives platforms. On Hyperliquid, on-chain analytics indicate more than 250 wallets dropped below millionaire status after the crash, according to plain-text reporting by HyperTracker. Simultaneously, a separate trader opened a 40x $11 million long position, underscoring elevated leverage on the day.
Binance issued a public statement addressing outages and reported depegging events in certain tokens, describing some issues as display-related and confirming core matching engines remained operational. Binance also announced compensation provisions totaling approximately $283 million for traders who lost collateral tied to specific assets (reported as USDE, BNSOL, WBETH in plain text). These details come from the exchange’s statement as reported by market observers; readers should consult official Binance disclosures for the full text.
Frequently Asked Questions
How large was the Hyperliquid short and what leverage was used?
The Hyperliquid short was reported as a $163 million perpetual contract using 10x leverage on Bitcoin. A prior, separate short reportedly realized about $192 million in profit. These figures are based on on-chain position data and public tracker summaries; they describe gross position sizes and reported realized gains as documented by on-chain analytics services.
Why did traders call this an “insider whale”? (Voice-search friendly)
Traders called the account an “insider whale” because the large short was opened shortly before a major public announcement and a sudden market move, raising suspicions about timing. This is a community allegation; investigations and exchange-level data would be required to confirm any insider activity.
Key Takeaways
- Confirmed large on-chain position: A wallet on Hyperliquid opened a 10x, $163M short on BTC following a prior $192M profit.
- Community concerns: Timing prompted allegations of insider activity; these are assertions by market participants and not proven facts.
- Exchange response and remediation: Binance issued a statement denying core engine failures and offered ~ $283M in compensation for affected collateral positions; on-chain trackers recorded widespread liquidations.
Conclusion
This COINOTAG report documents the large Hyperliquid short and ensuing market reaction using available on-chain data and public statements. The episode highlights the scale of leverage in crypto derivatives and the governance questions raised when large, timed positions coincide with market-moving events. Readers are advised to follow official exchange disclosures and block-explorer records (HyperTracker, Hypurrscan) for ongoing updates and verifications; COINOTAG will publish any confirmed forensic findings as they become available.