Bitcoin Surges Past $111K as About $180 Million in Liquidations Emerge, with Insider Trading Allegations Under Scrutiny

• Hyperliquid dominated liquidation volumes, with roughly $109 million in Bitcoin shorts and $98 million in Ethereum shorts reported in the last day.

• Legal context: crypto assets are treated as commodities in the United States, complicating insider-trading claims without a security designation.

• Whales continued to build bearish exposure, opening high-leverage shorts across BTC, ETH, and select altcoins on Hyperliquid.

Bitcoin liquidations surge as BTC breaches $111,000, triggering volatility and rapid moves; COINOTAG delivers ongoing coverage, expert analysis, and actionable insights.

What is Bitcoin liquidations?

Bitcoin liquidations refer to the forced closing of leveraged crypto positions when price moves trigger margin calls. In the last 12 hours, more than $180 million of liquidations occurred as Bitcoin rose beyond $111,000, driven primarily by short positions on Hyperliquid and other derivatives platforms. This activity reflects a highly volatile session with thinning liquidity.

What factors drive crypto liquidations during volatile sessions?

Volatility, high leverage, and thinning liquidity are key drivers. As prices move rapidly, margin calls cascade across derivatives venues, amplifying losses for traders holding excessive long or short exposure. Data from trackers show Hyperliquid accounting for a large share of recent liquidations, with Bitcoin and Ethereum bearing the bulk of the short squeezes. Market observers note that such episodes often occur when liquidity pools thin ahead of major moves or macro headlines, prompting a swift, reflexive unwinding of positions. Regulatory and trading-venue dynamics can also influence how quickly liquidations unfold in these conditions.

Crypto 12-hour liquidation data. Source: Coinglass

The price action, per several market watchers on X, is “unusually volatile and unsustainable,” after liquidity thinned over the weekend due to an unexpected surge in leveraged trading.

The largest crypto by market cap extended its climb to $111,121 on Monday’s early Asian trading sessions, while Binance futures premium crossed the $114,000 level.

Whale reloads shorts, gets ‘rekt’ by subtle market rally

The “Trump insider” crypto whale, a pseudonymous trader who gained notoriety after reportedly earning $160 million from shorting Bitcoin just before Donald Trump’s tariff announcement triggered a market-wide sell-off, is back to betting that a price slump will hit the market.

Onchain data from analytics platform Hyperscan showed the trader deposited $30 million in USDC to Hyperliquid before opening a $76 million Bitcoin short position with 10x leverage. The trade, sized at 700 BTC and entered at $109,133 per coin, carries a liquidation price of $150,080.

One crypto account on X, going by the username Going Deeper, noted that the same address had opened several similar positions after Bitcoin briefly recovered from last weekend’s drop. Transactions tracker Lookonchain also confirmed the same trader added 3,440 BTC in shorts, valued at $392.6 million, and was sitting on $5.7 million in unrealized profit at the time.

The “insider” whale is toast. 🐋 has been harpooned and bleeding. FIY: he’s no insider dickheads. #Bitcoin #btc $btc $crypto

— Going Deeper (@goingdpr) October 20, 2025

The timing of the “Trump insider’s” trades, particularly his profitable short ahead of Trump’s tariff announcement, has caused some market participants to speculate that the trades could have been made using privileged information about the policy decision.

However, legal commentators say the case for insider trading would be difficult to prove. Under US law, insider trading charges require that the traded asset be classified as a security, which Bitcoin and Ethereum are not. Both are recognized as commodities under the Commodity Exchange Act and therefore fall outside the SEC’s Rule 10b-5 jurisdiction under the Securities Exchange Act of 1934.

“Insider trading requires a fiduciary duty between the insider and whoever trades on the information,” a former SEC official explained. “Unless you can tie the traders to someone within the administration who had such a duty, it would be tough to make a case.”

The official added that proving such a connection would be difficult because government officials do not hold the same fiduciary duties as executives of private corporations. Even if the trader had advance knowledge of a policy move, it would be nearly impossible to prosecute under existing insider trading laws.

Whales join the ‘short side’

Retail traders may be rushing to close their shorts to avoid getting rekt by the recent price rebound, but several whales have continued to add bearish positions. Lookonchain reported that two addresses, 0x8c58 and 0x939f, have opened new high-leverage short positions on Bitcoin, Ethereum, Solana, and XRP on Hyperliquid.

Whales still seem bearish — adding more shorts. 0x8c58 deposited USDC to open a 20x short on 1,500 ETH (about $6.06M). 0x939f deposited USDC to open a 40x cross-margin short on 394 BTC (about $43.7M).

— Lookonchain (@lookonchain) October 20, 2025

The first address deposited $5.38 million in USDC to open a 20x leveraged short on 1,500 ETH, valued at roughly $6.06 million. The trade, entered at around $4,063 per ETH, is still active with a $39,978.12 realized profit.

The second address has made even larger moves over the past 20 hours, depositing $4.5 million in USDC to open a 40x cross-margin short on 394 BTC, valued at $43.7 million. The trader also shorted Solana, XRP, and Ethereum in parallel trades worth millions.

Onchain data showed that the Solana short, worth $11.38 million, was entered at $196.95, while the XRP short targeted 1.3 million tokens at $2.57 each. The trader’s Ethereum short, worth $2.63 million, was placed at $4,060. All of the trades bar Bitcoin have so far recorded positives, and the account is currently valued at $13,842,195, per Hyperscan data.

Frequently Asked Questions

What was the total value of liquidations in the last 12 hours?

Data trackers reported over $180 million in liquidations across the crypto market in the past 12 hours, with Bitcoin responsible for the majority. Ethereum and other assets contributed sizable liquidations as prices moved, underscoring heightened risk sentiment.

How might insider trading claims impact crypto markets?

Legal experts note that insider trading claims in crypto markets are complex because most major assets are not securities. Even with policy moves that affect prices, proving fiduciary duty between a policy insider and traders is challenging. The enforcement picture depends on asset classification and jurisdiction, so market sentiment may react, but prosecutions remain limited.

Key Takeaways

• Liquidations spike across major assets: Bitcoin and Ethereum shorts driven by rapid moves above key levels.
• High leverage amplifies risk: Leverage on Hyperliquid and similar venues magnified losses during the session.
• Regulatory context matters: While insider-trading allegations circulate, legal outcomes hinge on asset status and jurisdiction, influencing trader behavior.

Conclusion

Bitcoin liquidations and the ensuing volatility highlight the risk inherent in high-leverage crypto trading. By consolidating data from multiple trackers and market observers, COINOTAG provides a fact-based take on the session and emphasizes ongoing coverage to keep readers informed about evolving market dynamics.

Publication date: October 20, 2025. Updated: October 20, 2025.

Author: COINOTAG