There’s a fresh reason to panic about another possible flash crash as a whale who betted correctly against the market last time has opened a massive new short.
A researcher on 13 October shared onchain data revealing that the bear who opened a massive short just before the previous crash has opened a fresh $209 million short.
The trader has been described as an insider due to the accuracy of his prediction which successfully earned him $88 million.
He knows something
The crypto market took a downward turn following Donald Trump’s announcement of an over 100% tariff on Chinese imports.
Just minutes before the crash, the trader created a new account and shorted Bitcoin, resulting in a whopping $88 million in profit.
Some analysts have claimed that the trader must be a part of an insider group that deliberately participated in a large-scale manipulation of the market against retailers.
These large shorts are not isolated but are part of a recent wave of shorts by whales who seem to appear from nowhere and rig the market to make some quick profit. However, not all of them have been successful.
In September, one of such whales created a new account and shorted XRP, losing 80% of his portfolio but later opened another short risking $17 million.
Should the market worry?
Insider traders have access to secret information on decision makers and decisions they may make that will affect the market in a certain way.
This is generally frowned at, but the trader in question has no confirmed link to Trump. However if his prediction turns out to be true again, the market may experience another flash crash.
If he is wrong however, there’s nothing to worry about, but there’s no telling if he’s right or wrong until the market responds, posing a serious challenge.
What do you think?
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