How an anonymous wallet benefited from the cryptocurrency chaos

An anonymous wallet (0xb317) on the Hyperliquid derivatives exchange reportedly made $192 million in just a few hours during a period of high market volatility.

As Bitcoin (BTC) and Ether (ETH) prices plummeted, many traders were hit by liquidations that resulted in the loss of over $1 billion in leveraged positions. During the sell-off, one trader managed to find a miniature position that paid off handsomely. It’s unclear whether it was luck, timing or experience.

The timing of the wallet launch, just minutes before the U.S. tariff announcement sent the market tumbling, fueled speculation about insider knowledge or market manipulation. The incident highlights the significant impact of high-leverage trading on decentralized finance (DeFi). It also reveals the convoluted reality of today’s cryptocurrency markets, where large-scale anonymous traders can move billions and shape market sentiment with a single transaction.

How news about the US trade war caused massive liquidations of the cryptocurrency market

The market collapse began shortly after the US administration unexpectedly announced that it would impose 100% tariffs on Chinese imports, which surprised investors. This news caused a wave of shock on world markets.

The tariff announcement lowered stock prices, sent derivatives prices swinging wildly and pushed cryptocurrencies to plummet. Within hours, Bitcoin’s value plummeted, causing widespread liquidations on exchanges. Still, vulnerabilities in the cryptocurrency market had been growing long before news of the tariffs emerged.

The perpetual futures market was overloaded with open interest and excessive leverage, creating a fragile situation in which even a compact shock could trigger a wave of margin calls.

In this context, the decentralized derivatives platform Hyperliquid stood out. Unlike centralized exchanges (CEXs) with tighter controls, Hyperliquid’s open structure has made it the preferred venue for bold, high-stakes trades by mainstream traders.

Did you know? Some investors sell cryptocurrencies to hedge their long-term positions. By betting against price declines, they can protect profits during volatile periods. It’s like taking out insurance on your portfolio and allowing them to stay invested even when markets become choppy.

Onchain profit sharing of $190 million

Blockchain data traced the now-famous transaction to wallet “0xb317,” which opened a massive miniature position just before the US tariff announcement that reportedly caused cryptocurrency markets to crash.

On Hyperliquid, trader placed long-term miniature position with $208 million cross margin and 20x leverage. The position was placed at approximately $116,800 and the liquidation level was close to $121,000. As Bitcoin’s price plummeted, the trader’s unrealized profit exceeded $190 million – one of the most successful onchain miniature trades ever recorded.

But the trade had broader consequences. Over 6,300 accounts and over 1,000 wallets suffered losses entirely liquidated, with total losses exceeding $1.23 billion. Hyperliquid’s automatic deleveraging mechanism compounded the decline, increasing selling pressure.

Within hours, the investor’s portfolio position made a significant profit. It is unclear whether the position was fully closed or partially held, leaving followers guessing as to the trader’s timing and strategy.

Did you know? A huge miniature position can raise selling pressure, triggering a cascade of liquidations as prices fall quickly. This creates a domino effect in which each wave of liquidation drives prices even lower.

Wallet “0xb317” enters a up-to-date miniature position of $163 million against Bitcoin

Just days after reportedly making $192 million, wallet “0xb317” has entered into another major miniature trade. On October 12, 2025, a trader opened a leveraged position worth $163 million, betting on the price of Bitcoin.

The trader used approximately 10x leverage, with an entry price of close to $117,369 and a liquidation level of $123,510. The position leaves only a compact margin, just a few thousand dollars above the position value, before it reaches liquidation risk, reflecting both confidence and strategic risk management.

Execution suggests a deep understanding of market timing and liquidity dynamics. The investor appears to have good insight into market movements and economic events, allowing him to consistently take advantage of volatility at the appropriate time and scale.

Success, systemic risk and dangers of decentralized leverage

The cryptocurrency community is divided over the $192 million wallet miniature trade 0xb317. Some consider it an extraordinary display of marketable skill, others believe it was sheer luck.

Part of the cryptocurrency community believes that the success of an anonymous trader comes from skillfully reading data in the supply chain, derivative positions and market sentiment. Others, however, attribute the result to luck, arguing that random events can sometimes coincide with major world events.

The timing of the deal, just minutes before the U.S. tariffs were announced, sparked speculation about insider knowledge or front-running. Verifying such activity in decentralized markets is almost impossible. Some also argue that a huge miniature position may have deepened the market crash, triggering a wave of liquidations that intensified the sell-off.

Despite a trader’s success, there is still significant risk involved in miniature trading. A sudden market rebound could trigger margin calls, slippages or liquidations, showing how quickly fortunes can change in the high-stakes, leveraged world of cryptocurrency trading.

Did you know? Brief traders often employ leverage, which means borrowing funds to raise profits. While a miniature 20x position can magnify profits, it also magnifies losses. A compact move of 5% against a trader can wipe out an entire position, showing that leverage is both exhilarating and hazardous.

Liability in Anonymity: Legal and Ethical Challenges of $192 Million

The $192 million miniature trade sparked renewed discussions about the integrity of the largely unregulated cryptocurrency market. It also highlights the huge gap between large-scale, anonymous traders, or “whales,” and smaller retail participants.

The $192 million miniature trade not only represents a huge profit, but also sparked widespread discussion about the need for stronger oversight, transparency and accountability in the largely unregulated cryptocurrency markets. In classic finance, compliance with insider trading and market abuse regulations is standard, but such controls are still evolving in the crypto space.

For smaller traders, this event is a reminder of how high leverage and circumscribed capital can lead to earnest losses during volatile periods.

The incident also raised concerns about decentralized derivatives platforms and their ability to handle huge trades without causing market volatility. It showed that even with safeguards such as automatic deleveraging systems and insurance funds, these platforms can still cope with extreme conditions.

The trade also raised ethical and legal questions. If market manipulation occurs, who can be held liable in an anonymous market? Regulators may need to monitor the activities of traders more closely, especially among whales. Developing stronger risk management tools could also assist reduce the risks associated with such situations.