Massive $392M Bitcoin Short Sparks Debate Over Market Manipulation and Insider Timing
A trader famous for profiting after shorting Bitcoin and Ethereum before the recent market crash has opened new short positions. Blockchain tracker Lookonchain revealed that the trader re-entered the market at $115,783 per BTC, holding a 3,440 BTC short worth approximately $392.67 million. The current unrealized profit stands near $5.7 million, with a liquidation threshold of $128,030.
Despite Bitcoin rebounding to around $115,000, the trader increased exposure, showing renewed confidence in another downturn. To finance the position, about $80 million in USDC was bridged into and deployed in the futures market. This move suggests the trader is betting heavily on an extended price decline even as optimism grows across crypto markets.
Market analysts now question whether this is a calculated setup or a coordinated attempt to trigger another collapse. Traders remain watchful of leveraged liquidations that could magnify volatility in the short term.
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