When markets are shaking, fortunes are made — or lost.
On October 11, as U.S. President Donald Trump stunned the world by announcing a 100% tariff on Chinese tech imports, the crypto world went into a tailspin. Amid the chaos, one crypto whale emerged as a winner — pocketing $160 million in profit by shorting Bitcoin and Ethereum just in time.
The Economic Times
Here’s how that bold trade unfolded — and what it teaches us about risk, insight, and timing.
The Setup: A Massive Short Before the Storm
Using on-chain analytics, observers discovered that the trader opened short positions worth over $1.1 billion against Bitcoin and Ethereum.
He was betting that prices would fall sharply — and he was right. In just ~30 hours, crypto markets collapsed. Bitcoin dove, Ethereum followed, and leveraged positions across exchanges were liquidated.
By closing most of his short positions, he realized a gain of $160 million, while retaining some open bets (821.6 BTC) still riding the trend.
Why This Trade Worked (and Why It’s Rare)
1. Timing & Foresight
He placed his bets right before the tariff news broke. That kind of anticipatory move can’t be random — it requires reading macro trends, sentiment, or having some edge.
2. Leverage Amplifies Gains — and Risks
These were leveraged positions. In crypto, leverage can magnify profits — but also blow up positions if direction is wrong. He caught the move in the right direction.
3. Boldness with Discipline
He didn’t hold everything endlessly. He cut most positions quickly after the crash, locking in profits. He left some exposure, but protected most gains.
4. Market Chaos Favors Sharp Moves
When markets panic, many participants exit, liquidate, or react emotionally. A prepared trader can exploit that volatility.
But Every Coin Has Two Sides
Suspicion of Insider Information or Leak
Given how perfectly timed the trade was, some accuse that the trader might have had advance knowledge or insight.
The Economic Times
Huge Risk
If the tariff announcement had been delayed, reversed, or somehow unexpected, the trade might have backfired massively.
Liquidity & Slippage
Executing such large positions without heavy slippage or front-running is extremely difficult in crypto markets.
Market Impact
When big whales move, they can destabilize the market — creating cascades of liquidation across others.
What This Tells Us (Lessons for Traders & Investors)
Volatility is opportunity — if you have courage + precision.
Risk management is as critical as boldness.
Macro events can flip entire market sentiment — tracking them is essential.
Even in chaos, discipline (cutting losses, preserving gains) matters most.
Be wary of trades that seem “too perfect” — always consider information asymmetry.
Markets often move not because of fundamentals but panic — intuition, bets, whispers. In this case, a daring strategist translated that panic into $160 million. But for every whale who wins, many more drown.
In the world of crypto, the real winners aren’t the ones who get lucky — they’re those who prepare, adapt, and stay humble in success.
FAQ
Q: What does “shorting” mean in crypto?
Selling an asset (even one you don’t own) with the expectation its price will fall — you buy back later at lower price.
Q: How did the trader make money if the market crashed?
Because he bet against the market (short), he profited when prices dropped.
Q: Isn’t this insider trading?
It’s suspicious. Many in the crypto community have raised such concerns.
The Economic Times
Q: Can ordinary traders replicate this?
Highly risky. Timing, access, capital, and nerve all matter.
Q: What’s the bigger lesson?
Markets are emotional. Big events trigger waves. Those who can ride them with discipline may win — but risk is never zero.