In just two months, a mysterious whale used $1.1 billion in short positions to precisely harvest the market, then flipped and placed $700 million in long positions on the brink of liquidation, staging the most thrilling reversal of fate in the crypto world.
This trader, codenamed "1011 Insider Whale," precisely established a short position worth $1.1 billion before the market crash, with $752 million in Bitcoin shorts and $353 million in Ethereum shorts. He closed his positions near the market's lowest point, doubling his $30 million principal to $60 million, and then quickly exited.
1. Epic Shorting
On the evening of October 10, 2025, the crypto market was still immersed in a bullish atmosphere, with Bitcoin prices firmly at $117,000. At this time, a meticulously planned shorting operation had quietly begun.
● The trader, later referred to as the "1011 Insider Whale," started depositing funds into the decentralized exchange Hyperliquid to establish short positions in Bitcoin and Ethereum. By the evening of the 10th, his total short position had reached $1.1 billion.
● Around 5 AM the next day, the market suddenly collapsed. Bitcoin dropped nearly 1% per minute within 30 minutes, hitting a low of $102,000, with a daily decline of over 12%. The whale's short positions quickly became profitable, ultimately closing near the market's lowest point.
● Post-analysis revealed that the direct trigger for this crash was former U.S. President Trump's announcement to restart the trade war with China, planning to impose a 100% tariff on Chinese goods starting November 1.
2. Strategic Reversal
● Surprisingly, this whale completely changed his trading strategy in mid-October. Starting from October 14, he began to establish long positions in Ethereum and Bitcoin, achieving an impressive record of 12 consecutive profitable trades.
● By October 24, the whale held long positions worth $132 million in Ethereum and $20 million in Bitcoin, accumulating profits of $12.634 million. He used relatively cautious leverage, with a 5x leverage for Ethereum positions and 4x for Bitcoin positions.
● Market data showed that multiple top traders simultaneously shifted to long strategies, with total position sizes exceeding $200 million. The leverage used by whales also became more rational, with long positions concentrated in the 4-7x range, compared to the earlier common 20-40x high leverage.
3. Edge of the Abyss
The whale's predicament began with a misjudgment of market direction. From late October to December, he continuously increased his long positions, and by December 18, his total holdings had reached approximately $700 million.
● Specific holdings included: 191,000 Ethereum long positions, opening price $3,167; 1,000 Bitcoin long positions, opening price $91,506; and 250,000 Solana long positions.
● As the cryptocurrency market continued to decline, these positions incurred massive unrealized losses. As of December 18, the whale's total unrealized loss had reached $73.18 million, with the Ethereum long positions alone showing an unrealized loss of $64.28 million.
● More critically, he had only $27 million left in margin, while the liquidation price for the Ethereum long positions was around $2,083. This meant that if the market continued to fall, he would face the risk of liquidation.
4. Whale Action Comparison
This "Insider Whale" was not the only active large trader in the market. On December 12, another Hyperliquid whale adopted a completely different strategy.
● This trader established a long position worth $555 million with a low leverage of about 2.3x, covering Ethereum, Bitcoin, and Solana. This leverage level was significantly lower than that of the "Insider Whale," indicating a more conservative risk management strategy.
● Another whale marked as "pension-usdt.eth" closed a Bitcoin short position of about $88.8 million on December 15, making a profit of about $950,000, and then flipped to establish a $32.11 million Bitcoin long position.
● Meanwhile, a trader known as the "Ultimate Bear" continued to adhere to a short strategy, closing part of his Bitcoin short positions on December 18 for a profit of about $1.75 million. His Bitcoin short position was approximately $50.38 million, with an unrealized profit of $14.56 million.
5. Market Chain Reaction
● The movements of large whale positions often have a significant impact on market sentiment. On December 17, the "1011 Insider Whale" made another notable on-chain operation, transferring approximately $1.08 billion worth of 368,000 Ethereum to five newly created wallets.
● Such large-scale asset transfers are typically interpreted as position management or preparation for potential operations, rather than direct selling. Nevertheless, the scale of this capital flow still attracted widespread attention in the market. If this whale's long positions were ultimately forcibly liquidated, it could trigger a chain reaction in the market. Large-scale liquidations could exacerbate market declines, creating a vicious cycle.
6. Leverage as a Double-Edged Sword
● The case of the "Insider Whale" highlights the significant risks of leveraged trading in the cryptocurrency market. His success in profiting from the precise shorting on October 11 was partly due to the relatively high leverage used.
When the market direction is correctly judged, leverage can significantly amplify profits; but when the market moves contrary to expectations, leverage can also accelerate losses.
● Compared to traditional financial markets, cryptocurrency exchanges typically offer higher leverage ratios, with some platforms even providing leverage of up to 100x. This high-leverage environment, while attracting a large amount of speculative capital, also increases the overall fragility of the market.
● The core of this whale's current predicament lies in the high leverage of his Ethereum long positions. According to estimates, the liquidation price of his Ethereum long positions is around $2,083, which is still quite distant from the current market price, but if the market continues to decline, the risk will significantly increase.
As of December 18 data, this whale, who once accurately predicted the market crash, still has an average opening price of $3,167 for his Ethereum long positions, while the liquidation line of $2,083 looms like a cliff approaching.
His $108 million worth of 368,000 Ethereum quietly lies in five new wallets, while only $27 million in margin remains in the trading account, silently calculating every dollar distance to the liquidation point.
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