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Two Accounts, $160 Million, and a $19 Billion Crypto Collapse

A $19 billion crypto crash wiped out leveraged traders worldwide — but two anonymous accounts on Hyperliquid made $160 million. Here’s how they did it, why it matters, and what it reveals about market leverage, insider timing, and political influence in crypto.

In one of the most dramatic market events of the year, the cryptocurrency world witnessed a $19 billion wipeout in a matter of hours. Triggered by a surprise announcement of 100% tariffs on Chinese imports by former President Donald Trump, the crypto markets were plunged into chaos.

Bitcoin, Ethereum, and other major digital assets fell sharply as leveraged traders rushed to cover positions. Exchanges saw billions in forced liquidations, marking the single largest day of crypto deleveraging in 2025.

But amid the carnage, two anonymous accounts on a little-known trading platform walked away with an astonishing $160 million profit — turning the market’s collapse into their personal windfall.

Table of Contents

The Spark: Trump’s Tariff Bombshell

The dominoes began to fall shortly after Trump’s tariff declaration hit the news. Traders reacted instantly, anticipating a risk-off environment that could drag Bitcoin and other digital assets lower.

What followed was a global unwind of highly leveraged bets — particularly on futures and perpetual contracts — leading to a liquidation cascade across major exchanges like Binance, Bybit, and OKX.

Crypto analytics platforms later estimated that more than $19.4 billion in leveraged positions were erased within 24 hours. The event, dubbed “The Great Crypto Flush,” highlighted how dangerously overextended the market had become.

Two Trades That Defied the Storm

The most fascinating part of this story emerged days later, when blockchain data revealed that two accounts on the decentralized exchange Hyperliquid had opened massive short positions minutes before Trump’s statement became public.

As the market collapsed, these two traders rode the wave downward, reportedly closing their positions for a combined profit of roughly $160 million.

The timing was uncanny — so precise that many analysts began questioning whether these trades were the product of sheer luck or insider knowledge.

Speculation and Suspicion

Market observers and blockchain analysts were quick to raise eyebrows. How could anyone have known to short so heavily — and at that exact moment?

While there’s no concrete evidence of insider information, the perfect alignment between the timing of the shorts and Trump’s tariff announcement sparked debate over information asymmetry in decentralized markets.

Hyperliquid, unlike centralized exchanges, doesn’t require identity verification or centralized oversight. This makes it difficult to trace who executed the trades, or whether they had access to advance information.

Still, many in the crypto community view this as a wake-up call about how opaque and unregulated parts of the DeFi world remain.

A Brutal Lesson in Leverage

The incident exposed the underlying fragility of the crypto ecosystem — especially its dependence on leverage.

As traders take on larger and riskier positions, even a single unexpected macroeconomic event can cause chain-reaction liquidations. Each forced sell order pushes prices lower, triggering more liquidations in a feedback loop.

It’s a cycle that has repeated through multiple crypto “flash crashes,” but this one stands out because of its sheer scale and precision timing.

The lesson? Even in bull markets, leverage is a double-edged sword. When the blade swings, it cuts deep.

The Political-Crypto Connection

Adding to the intrigue, the World Liberty Financial token — a Trump-linked crypto project involving his sons — dropped more than 30% during the same selloff.

This incident underlines how deeply intertwined politics and crypto markets have become. A single policy announcement can now spark billions in value destruction, or creation, within hours.

It also raises concerns about the potential for market manipulation or foreknowledge, especially as political figures become more directly involved in digital assets.

What Comes Next

In the aftermath, questions linger:

  • Who were the traders behind the $160 million win?

  • Did they act on information unavailable to others?

  • And will regulators — or blockchain sleuths — ever uncover the truth?

For now, one thing is certain:
The event exposed the thin line between chaos and control in the crypto economy.

A single news headline erased fortunes, enriched a few, and reminded the world that in crypto, timing isn’t just everything — it’s survival.

Conclusion

The “$19 Billion Crypto Collapse” wasn’t just another selloff — it was a mirror reflecting everything volatile, vulnerable, and fascinating about the digital asset revolution.

From decentralized trading platforms to politically charged markets, this episode proves one thing:
Crypto doesn’t just react to history — it makes it.

FAQs

What caused the $19 billion crypto collapse?

The crash was triggered by former President Donald Trump’s sudden announcement of 100% tariffs on Chinese imports, which led to panic selling and massive liquidations of leveraged crypto positions across global exchanges.

How did two accounts make $160 million during the selloff?

Two anonymous traders on the decentralized exchange Hyperliquid placed huge short positions minutes before the tariff announcement. When prices plunged, their bets paid off — yielding an estimated $160 million profit.

Was there insider trading involved in these trades?

There’s no confirmed proof of insider trading, but the precise timing of the trades — just before Trump’s public statement — raised speculation about access to privileged information or early leaks.

Which cryptocurrencies were most affected?

Bitcoin and Ethereum led the losses, along with other major altcoins and Trump-linked tokens like World Liberty Financial, which fell by over 30% during the event.

What lessons can traders learn from this event?

The collapse highlights the dangers of excessive leverage, the speed of macro-driven market reactions, and how political announcements can instantly reshape crypto valuations. Risk management and awareness of global policy moves are essential.

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