4 new addresses, precisely shorted with 40x leverage 1 hour before the crash
Early this morning, BTC was still above $85,000.
4 wallets, all created less than 24 hours ago.
They collectively deposited 1 million USDC and opened a 148.49 BTC short position at 40x leverage, with a notional value of $12.5 million.
One hour later, BTC fell below $84,000.
$410 million in liquidations occurred across the network in nearly 1 hour, including $398 million in long liquidations. The largest single liquidation was an Ethereum long position worth $26.64 million.
Shorting BTC with 40x leverage means that BTC only needs to rise 2.5% in the opposite direction for liquidation.
In other words, there is only one possibility for these 4 addresses to open 40x leveraged short positions around $85,000: they were almost certain that BTC would fall.
Anyone who trades knows that 40x leverage does not mean “I’m bullish on the direction”; it means “I’m certain I can’t be wrong.”
This is not a bet. This is knowing.
On-chain investigators can see the addresses, but not the people behind them.
4 new wallets, created at the same time, taking the same direction, with perfect timing and 40x leverage.
Statistically, this is less likely than flipping heads 10 times in a row.
This is not the first time Hyperliquid has been embroiled in controversy over “perfectly timed shorts.”
In October 2025, one minute before Trump announced 100% tariffs on China, a wallet on Hyperliquid precisely added to its short position, ultimately earning more than $150 million. The largest short position tracked that day involved approximately $1.1 billion worth of Bitcoin and Ethereum.
The incident reached Congress. House Oversight Committee Chairman Comer formally sent a letter to Hyperliquid, requesting KYC information and suspicious transaction identification records, and posing a central question: Why has a decentralized platform become a breeding ground for insider trading?
Comer’s exact words at the time were that the trade was “precisely timed to a nonpublic government decision”—precisely aligned with a nonpublic government decision.
One year later, the same thing has happened again.
They made money. You have no idea who they are.
All of Hyperliquid’s transaction records are on-chain, public, and transparent. The addresses, positions, profits, and losses are all visible.
But the people behind the addresses are not.
The platform has no KYC mechanism and cannot refer the parties involved to law enforcement.
All your positions, stop-losses, and liquidation levels are transparent on-chain. But those who knew in advance, cloaked in anonymous wallets, calmly harvest profits just above your stop-loss orders.
Information asymmetry has been magnified on-chain.
After the crash early this morning, BTC’s funding rate turned negative at -0.012%. Open interest remains at $45.7 billion, up 1.5% over 24 hours.
A negative funding rate means shorts are beginning to take control, with longs paying to hold their positions.
And those 4 addresses were already waiting on the other side before the funding rate turned negative, while everyone else was still bullish.
Those 4 addresses this morning may be just the tip of the iceberg.
After the $1.1 billion short position in October 2025, Congress investigated for a year, questioned everyone involved, and what happened in the end?
On-chain analysts linked the wallet involved in that trade to former BitForex CEO Garrett King. King denied insider trading, arguing that he was “serving clients.”
And then? Nothing.
Hyperliquid has no KYC, and the identities behind the addresses remain a mystery to this day. Congress sent the letter, the investigation is ongoing, but the $150 million has already been pocketed.
Rules cannot keep up with anonymity. Regulators cannot keep up with the blockchain.
They did not “predict” the direction before the crash. They “knew” the direction before the crash.
While you were studying technical indicators, they were looking at the calendar.
While you were setting stop-losses, they were counting down to your liquidation.
While you were studying support and resistance levels, they were studying when you would panic.
They are not making money from the market. They are making money from information.
And you are the final link in that information chain.#OneGate见证计划 #GT三季度销毁近200万枚 #CFTC拟设加密资产市场新类别 $BTC $ETH $SOL