From insider to the edge of the abyss: how a huge whale position turned against him

In the morning of December 18, one of the most experienced crypto traders was on the brink of total disaster. A person who just two months earlier accurately predicted a market crash and doubled their capital from $30 million to $60 million was now risking losing everything on a single wrong bet. How did it happen?

July 2025: The Perfect Short Operation

It all started on October 10. The crypto market was at a peak of optimism: Bitcoin confidently stayed above $117,000, and Ether was valued at $2,800. It was during this time that a trader under the code name “1011 Insider Whale” began executing one of the most coordinated short attacks in Hyperliquid history.

The mysterious player systematically opened positions against Bitcoin and Ether, reaching a total short amount of $1.1 billion — of which $752 million was in Bitcoin and $353 million in Ethereum. The sum was so enormous that any movement could shake the entire market.

Literally a few hours later, his intuition was eaten away. Early on October 11, the crypto market plummeted sharply. Within half an hour, Bitcoin was losing nearly 1% per minute, dropping below $102,000. The day ended with a twelve percent decline. The whale closed his shorts almost at the bottom, turning $30 million into $60 million. The lightning-fast bet turned out to be a huge guess.

What triggered the crash? Officially, the reason was Trump’s announcement of a 100% tariff on Chinese goods — enough to ignite panic selling across the sector.

Mid-October: Turning to Longs

But the whale’s success was short-lived. Instead of staying on the sidelines and resting, the trader suddenly changed tactics. From October 14, he began aggressively opening long positions — first on Ethereum, then on Bitcoin.

What happened next was astonishing: over the course of several days, the whale maintained a series of 12 consecutive profitable trades. By October 24, his portfolio consisted of $132 million in Ethereum longs and $20 million in Bitcoin. Unrealized profit reached $12.634 million.

At this stage, the whale demonstrated prudence: instead of the usual 20-40x leverage, he used moderate leverage — 5x for Ether and 4x for Bitcoin. It seemed he had learned to manage risks. Other top traders also shifted to longs, and the total volume of combined positions exceeded $200 million.

December: Infinite Position Buildup

It all started here. From late October to mid-December, the whale monotonously, one after another, increased his long positions. As if ignoring warning signals from the market, he continued buying lower.

By December 18, his portfolio reached a critical volume:

• 191,000 Ethereum contracts at an average entry price of $3,167
• 1,000 Bitcoin contracts at $91,506
• 250,000 Solana contracts

The total value of positions approached $700 million.

Against the backdrop of the market decline, unrealized losses became catastrophic. Ethereum units were already worth $3,120 (according to current data), which meant losses of about $64.28 million just on this asset. The total unrealized loss reached $73.18 million.

The scariest part — the margin remained at only $27 million. The liquidation price of the Ethereum long hovered around $2,083 — meaning the whale was effectively on the edge of the abyss.

The Last Move Before Liquidation

On December 17, the whale made a strange move: transferred 368,000 Ethereum worth about $1.08 billion to five new addresses. It was not just a transfer — it looked like preparation for something big.

The market interpreted this action ambiguously. Was he preparing to sell his position? Or was it just a transfer of assets for safety? But one fact was unnoticed: if his long positions were liquidated, it would trigger a chain reaction across the entire platform. Mass liquidations would create a negative cycle, intensifying the fall and pushing other positions to the edge.

Lessons from the Fall of the Kings

The story of this whale is a textbook on the double-edged nature of leverage. What makes it effective at the right moment can wipe out an account at the wrong one.

When the direction is correctly identified (as of October 11), leverage turns $30 million into $60 million. But when the market moves against — it accelerates liquidation.

On crypto exchanges, unlike traditional markets, leverage often reaches incredible 100x. This attracts specialized players but also makes the entire market unstable. One giant order — and the entire balance is disrupted.

As of December 18, this former “insider king” still waits. His 368,000 Ethereum are quietly sitting on new wallets. But only $27 million of margin remains on his trading account, silently counting dollar by dollar to the point of no return.

Crypto has a short way of reminding: yesterday you could be a genius, today — a victim of your own positions.