The cryptocurrency market was rocked late Friday by a steep sell-off across major tokens, prompting concerns that the drop may have been more than just a knee-jerk reaction to geopolitical headlines. Initially attributed to the US President’s announcement of aggressive tariffs against China, crypto observers have since uncovered evidence suggesting Friday’s rout may stem from a sophisticated assault targeting Binance, the world’s leading crypto exchange.
Multiple trading pairs on Binance experienced unnaturally sharp declines compared to other exchanges—a technical anomaly that rapidly drew scrutiny from on-chain analysts. Cyber investigators have outlined a scenario whereby vulnerabilities in the BNSOL/WBETH price oracle were exploited, enabling a coordinated unwinding of overleveraged positions tied to the USDe stablecoin. Simultaneously, a large short position was reportedly opened on the Hyperliquid exchange, compounding the chaos.
Binance founder Changpeng Zhao (CZ), addressing the swirling speculation, stated, “I’m not sure about its validity. I hope someone can verify it,” underscoring the opacity and complexity of the unfolding situation.
Blockchain sleuths have identified the so-called Hyperliquid/Hyperunit whale as the mastermind behind the attack. This entity allegedly possesses more than 100,000 BTC and recently executed a $4.23 billion Bitcoin sell-off to acquire Ether, followed by a massive $735 million short position against Bitcoin itself. On-chain data points to the Ethereum address ereignis.eth—linked via the alias garrettjin.eth—drawing attention to Garrett Jin, a seasoned figure in crypto markets.
Jin’s profile reveals a storied past: he established Da Yo Trading (HK) in 2012, served as Huobi (HTX) exchange’s Director of Operations, and later launched FuLang Medical GmbH in Germany. Notably, as CEO of BitForex (2017–2020), Jin presided during a period marked by accusations of volume manipulation and a $57 million hack that crippled the exchange and led to its shutdown, with user balances frozen and staff reportedly detained in China.
Investigators believe funds connected to the whale originated from withdrawals tied to Huobi, OKX, ViaBTC, Bixin, and Binance as far back as 2017, fuelling suspicions that dormant assets from BitForex and Huobi are being reactivated. Jin also reportedly leads the institutional staking platform XHash, which some analysts warn could legitimize funds with obscure origins.
While definitive proof remains elusive, the close timing between Friday’s short orders, anomalous Binance price swings, and Trump’s policy announcement is driving speculation that coordinated market manipulation may have played a far greater role in recent losses than previously believed. The episode has injected new urgency into the need for heightened transparency and robust risk protocols across global exchanges as crypto markets mature.
Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Investors should always conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions in cryptocurrencies, which are highly volatile and speculative assets.
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