Unveiling Trump's "Inside Story": The Billion-Dollar Profit Behind the Seven-In, Seven-Out Trading Technique

Key Points

On October 10, 2025, three mysterious wallet addresses initiated a massive short approximately 30 minutes before Trump announced 100% tariffs on China. The subsequent market crash triggered a $19 billion liquidation, netting these addresses $160-200 million in profits. One of these addresses subsequently employed a "seven in, seven out" strategy, winning all seven trades and generating $10.02 million in profits. Although the individuals involved denied insider trading, their precise timing and massive profits have sparked widespread skepticism.

Core Analysis

Key Address Matrix

These addresses form a correlation matrix through a common source of funds ( Crypto.com hot wallet) and the same Hyperliquid bridge mode.

October 10th Shocking Blow

Timeline analysis :

• 14:00 UTC : Large-scale USDC inflows into Hyperliquid
• 2:30 PM UTC : Opened a $1.1 billion BTC/ETH short position (10x leverage)
• 14:57 UTC : Trump issues tariff announcement
• 15:20 UTC : Market triggers $19 billion in liquidation event

Short details :

• BTC Position : 6,189 BTC, approximately $450 million in notional value
• ETH position : 81,203 ETH, quite large
• Leverage ratio : 10-12 times, greatly magnifying profits
• Liquidation price : BTC approximately $130,810, ETH approximately $4,589

The market plummeted from BTC $122,500 to $104,600 (a 15% drop), and ETH fell from $4,200 to $3,436 (a 20% drop).

Analysis of the "Seven In and Seven Out" Strategy

The 0xc2A address has been implementing a unique “seven in, seven out” strategy since October 14th:

This strategy exploits market volatility after a crash and uses a high-frequency trading model of fast in and out (hours to days) to continuously profit on BTC/ETH perpetual contracts. On-chain data shows that 10 million USDC was bridged as initial capital on October 15. Cryptoslate

On-chain data analysis

Tracking capital flows

Main transaction records (UTC time):

Profitability Verification :

• Total USDC bridged is approximately $50.6 million (deposited)
• CEX inflows of approximately $51.7 million
• Net inflow of approximately $1.1 million (underestimates actual profit due to withdrawals to new wallets)
• Net USDC on-chain growth of approximately $160 million, consistent with reported profits

Position Dynamics

Follow-up actions :

• October 20: 3,003 BTC (worth $338 million) deposited to the exchange
• October 22: $234 million in new BTC short positions opened
• Unrealized profit: approximately US$6.15 million (as of reporting time)

The current BTC open interest totals $53.7 billion, with a 24-hour change of -1.05%.

Social media response analysis

Community doubts

The crypto community reacted strongly to this incident, with the main focus being on:

Timing questioned : Many analysts pointed out that it is extremely unlikely to open such a large short position 30 minutes before Trump 's announcement.

Fairness concerns : Community calls for "proof of market fairness," requiring subpoenas for exchange logs.

Response from the parties

Identity revealed : Binance founder CZ confirmed through on-chain analysis that the whale is former BitForex CEO Garrett Jin.

Denials : Jin has publicly denied any connection to the Trump family or insider information, claiming it was an independent trading strategy based on macroeconomic judgment.

Continued operation : Despite facing doubts, Jin subsequently increased short short position to $340 million , further sparking controversy.

Technical analysis perspective

Market structure analysis

Market status before the crash :

• BTC RSI 60.07 (overbought warning)
• Holdings reached $70 billion (up 10% from the previous week)
• Funding rate 0.35%-1% (long positions are overcrowded)

Technical signal convergence :

• Bollinger Bands expanded to 3 standard deviations
• MACD histogram turns negative
• RSI plummeted from 60 to 28 (severely oversold)

Liquidation Waterfall :

• Long liquidations concentrated in the $110,000-105,000 range
• $4 billion in long positions were liquidated below $3,800 on ETH
• Total liquidation volume was $19 billion, with 85% of it being long positions.

Risk-return analysis

High leverage (10x) has a double-edged sword effect in volatile markets: there is no perfect timing, and a 5% rebound can lead to liquidation.

Regulatory and compliance considerations

Legal gray area

Regulatory gaps :

• DeFi perpetual contracts lack CFTC enforcement
• Anonymity of decentralized exchanges like Hyperliquid
• The regulatory difficulties of cross-chain bridge transactions

Evaluation of Insider Trading Evidence :

• Supporting arguments : 30-minute precise timing and huge profit scale
• Counterargument : No direct evidence of Trump connection, trader has a good track record
• Probability assessment : Based on timing analysis, the probability of coincidence is extremely low

Policy impact analysis

The Trump administration faces scrutiny over the STOCK Act, raising the possibility that family members may be trading based on policy information. The non-regulated nature of cryptocurrencies makes such manipulation possible, but the direct impact of tariffs on Chinese mining hardware will undoubtedly impact BTC/ETH prices.

in conclusion

This incident highlights the vulnerability of the crypto derivatives market to political shocks and the potentially enormous profit opportunities presented by information asymmetry. Although the parties involved deny insider trading, the precise timing of the 30-minute trade and the resulting profit of $160-200 million exceeded market expectations. The successful execution of the "seven in, seven out" strategy further demonstrates the profitability of professional traders in a highly volatile environment.

Regardless of whether insider information was involved, this incident presents new challenges for regulatory improvement and investor protection in the crypto market. As traditional financial regulatory frameworks expand into the digital asset sector, the space for similar gray areas may gradually shrink.