In the cryptocurrency circle, the '1011 insider giant whale' is definitely a well-known name, and some also call him the 'BTC OG insider giant whale'. The reason he is dubbed 'insider' is not because he has any inside information, but because his past operations were too precise—such as the market trend around October 11, 2025, where he accurately hit the rhythm, making a fortune, and the community jokingly referred to him as having 'insider knowledge'. Essentially, he is a top player who makes a living through on-chain data analysis with a very high success rate.
But no matter how powerful the giant whale is, it can't escape the 'harvest' of high leverage. On the early morning of February 1, 2026, the crypto market experienced a sharp decline, with the price of ETH directly falling to around $2400 from its high, along with a large number of leveraged long positions being 'liquidated'. In this wave of market activity, the worst off was this '1011 insider giant whale'.
First, let’s clarify the entire event in simple terms that everyone can understand, without using jargon:
This whale previously opened a massive long position in ETH on Hyperliquid (a platform specialized in high-leverage perpetual contracts) — in plain terms, he bet that ETH would rise, and added extremely high leverage, with a consistently low position health. Once ETH falls to around 1950-2000 dollars, his position would be forcibly liquidated (i.e., blown up). On-chain monitoring revealed that the scale of this position reached hundreds of millions of dollars, qualifying it as a big gamble.
The result was that on February 1st, the price of ETH suddenly plummeted due to a 'precise pinning' (a short-term rapid drop followed by a rebound), directly breaking many people's stop-loss lines, triggering widespread liquidations, and this whale's long position was also not spared, facing forced liquidation. According to various media and on-chain analysts, he lost between 230 million to 250 million dollars this time, and the Hyperliquid account was left with only a few dozen dollars, nearly going to zero, a top-tier version of 'returning to square one overnight.'
What’s even more puzzling is that after the liquidation, he didn’t sit idly by; instead, he urgently transferred ETH into Binance continuously. According to on-chain data, he transferred over 106,000 ETH cumulatively, which, based on the prices at that time, was worth approximately 257 million dollars, with an average transfer price of about 2427 dollars — this operation directly caused a stir in the community, and everyone is guessing what his intentions are.
First, let me reassure everyone: he has not reached a point of 'losing everything.' Current on-chain data shows he still has about 469,600 ETH, worth approximately 1.11 billion dollars, and with an additional 39,600 BTC in hand, his total assets still exceed 4 billion dollars. His foundation remains solid; this loss is more like a 'painful but manageable lesson.'
Returning to the core question: why is he frantically transferring ETH to Binance? Based on discussions from on-chain analysts (like Ai Yi and Onchain Lens) and the community, there are three main interpretations that are very relatable and easy to understand:
The first approach: supplementing margin and setting stop-losses to leave room for future operations. Although the long position was liquidated this time, he might still have other remaining positions or want to rebuild positions as a remedy. Transferring his spot ETH to the exchange and selling it would allow him to convert it into stablecoins, either to replenish the margin for other positions or to set stop-losses in a timely manner to reduce potential future losses, which is considered a 'crisis management operation.'
The second approach: repaying DeFi lending debts. This has been his long-standing strategy — pledging ETH to lending platforms like Aave, borrowing USDT or USDC, and then using the borrowed money to buy more ETH, or opening contracts to amplify returns, commonly referred to as 'circular leverage.' After this liquidation, his overall position health collapsed, and if he doesn’t repay the lending debts, he might face further liquidation. Therefore, he urgently transferred ETH to cash out and repay debts, to avoid greater losses, which is also one of the core interpretations given by Onchain Lens monitoring.
The third approach: cashing out to relieve pressure and secure profits. With the market plummeting and losing over 200 million dollars overnight, anyone would panic. From a risk management and psychological perspective, transferring part of his spot holdings to a centralized exchange was to facilitate quick cashing out — holding some stablecoins offers more peace of mind and can hedge against further market downturn risks, which is deemed a 'steadying operation.'
It must be emphasized that he is not trying to 'go all in and liquidate.' The 106,000 ETH transferred is just a small part of his total ETH holdings, with most of the ETH still held, indicating that he still has confidence in ETH long-term. This token transfer is more of a 'crisis response' rather than a complete exit.
In fact, this situation reflects the most authentic portrayal of the crypto market — no matter how bullish the whales are or how high the win rates are, they cannot escape the risks of high leverage. This '1011 insider whale' previously made over a hundred million in unrealized profits with precise operations countless times, yet fell victim to 'high leverage + extreme market conditions,' losing 250 million dollars overnight, perfectly illustrating that 'leverage is a double-edged sword': it can amplify your profits and make you rich quickly, but it can also bring you back to square one in an instant when a black swan event occurs, and even 'gods' can fail.
Now, many people in the community are saying, 'The best is yet to come,' which is not hard to understand: With such a large scale, any subsequent actions, whether it’s continuing to exchange tokens, building positions, or selling off, will likely impact the market's short-term liquidity and even cause minor fluctuations in ETH and BTC.
Finally, I’d like to remind all cryptocurrency investors: the crypto market is inherently highly volatile, especially recently. Not only has ETH plummeted, but BTC also suffered a one-night drop of 8%, with global liquidation amounts exceeding 1.2 billion dollars within 24 hours. Hyperliquid has become a major area of liquidation, with liquidation amounts reaching as high as 10.276 billion dollars in the last 24 hours, with long positions accounting for over 90%. Extreme market conditions are everywhere. High leverage may seem like 'a sure-win strategy,' but it actually harbors hidden dangers; a single mistake could lead to total loss. Remember this: DYOR (Do Your Own Research), respect the market, control risks, avoid blindly following whale operations, and do not put faith in 'high win rates.' In the crypto market, staying alive is more important than anything else.
Disclaimer: The content described in this article is for reference only and does not constitute any investment advice. Investors should consider their own risk tolerance and investment objectives, rationally assessing cryptocurrency investments and avoiding blind following.
