A high-stakes Bitcoin short trade, executed just moments before a critical U.S. tariff announcement, has ignited a fierce debate over potential insider trading and raised questions about market integrity. The controversial move, which saw a trader net a substantial profit amidst widespread liquidations, has drawn intense scrutiny, leading to a crypto investigator's retreat and calls for official regulatory action.
The Controversial Bitcoin Short and Insider Allegations
The saga began with a Bitcoin short position placed by trader Garrett Jin on Hyperliquid, minutes before President Trump's October 11 tariff post, reportedly yielding between $160-$200 million for the trader and triggering a massive $19 billion in liquidations across crypto exchanges. Crypto investigator "Eye" initially spearheaded the probe, tracing wallets and suggesting Jin might be a "frontman" for a sophisticated network with access to confidential White House information. Allegations surfaced linking the trade to World Liberty Financial (WLFI) co-founders, who reportedly have ties to Donald Trump Jr. Further fueling suspicion, a 30% sell-off of WLFI tokens occurred hours before the tariff announcement. However, Eye abruptly ceased the investigation, citing safety concerns and having "drilled too deep" into unsubstantiated allegations.
Trader's Denials and Continued Market Activity
Garrett Jin vehemently denies any insider trading, asserting that his position was based purely on macro and technical analysis, not non-public information. He criticized figures like Binance co-founder Changpeng Zhao for amplifying the accusations and denied any connection to the Trump family, though he later deleted a tweet making that specific denial. Jin outlined a five-point thesis for his short, citing signals like overbought U.S. tech and heavy market leverage. Despite the controversy, Jin's wallet activity didn't stop; it opened another significant Bitcoin short position shortly after, demonstrating a continued belief in a downward trend. His past, including running the now-defunct BitForex exchange, has also come under scrutiny, alongside observed modifications to his public social media profiles.
Unresolved Questions and Regulatory Demands
The "Big Bitcoin Short" leaves many questions unanswered. While commentators have urged caution against easily linking public identities to wallet addresses, the precise pathway linking Jin to the alleged insider network remains unclarified. No independent verification of Eye’s WLFI allegations has emerged, and the named parties have not issued new statements regarding the network claims. Despite growing calls from legal experts for formal review, no U.S. market regulator or law enforcement agency has officially announced an investigation into the October 11 trades, leaving the speculative nature of the trade—and the broader implications for market fairness—in an unsettling state of limbo.
