What caused the massive Bitcoin crash? Clues point to a blow-up at Hong Kong hedge funds [Fortune]
DeFi Development Corp. (DFDV)
Company Research
Source: Fortune
On Friday, Bitcoin had clawed back most of those losses, and is now trading around $70,000, but the episode has left even longtime crypto insiders asking each other “What just happened?!” There are plenty of theories swirling around, but one is particularly compelling: The cause of the crash lies with Hong Kong traders who placed high-leverage Bitcoin bets that went horribly wrong. Recommended Video That theory was put forth on X by Parker White, a former equities trader who is now COO at a crypto firm called DeFi Development Corporation. In a long thread, White said there is evidence pointing to the sudden implosion of Hong Kong hedge funds that held call options in BlackRock's IBIT, which is the world's biggest Bitcoin ETF. White suggests that the hedge funds used the Yen carry trade (a form of interest arbitrage) to finance big positions in out-of-the-money IBIT options. This amounted to a risky bet that Bitcoin prices, which have been slumping since a big sell-off in October
Show less
Read more
Impact Snapshot
Event Time:
DFDV
Last Price
Price Change
Price Change%
Volume Shares
Max Up
Max Down
%
Volume Ratio
Performance Comparison
Updated
|
Event Day
Stock performance from the time of news release until the following 4pm ET market close
|
Last price at news event
|
Since Event
Multi-day stock performance from the time of the news release
|
|---|---|---|
|
EVENT DAY
Stock performance from the time of news release until the following 4pm ET market close
|
LAST
PRICE AT NEWS EVENT |
SINCE EVENT
Multi-day stock performance from the time of the news release
|
| Last Price | ||
| VWAP | ||
|
High:
|
Max Up |
High:
|
|
Low:
|
Max Down |
Low:
|
|
%
|
Post news range |
%
|
|
|
Price change |
|
|
|
Price Change Percentage |
|
|
|
S&P 500 (SPX) |
|
|
%
|
Volume ratio |
%
|
| Volume | ||
| Ticks | ||
|
|
Avg transaction size |
|
Don't Miss Out On The Next BIG Stock Move
Event day
Event Day Chart will not be displayed beyond 90-day period of the event
Performance since event
Time And Velocity Analysis
Be the first to know
Opt in for alerts from News Quantifed
Sign Up Today
Opt-in for
DFDV alerts
Learn More With NQ
Reading the Impact Report
Help Me Understand This Data
Help Me Understand This Data
How NQ Works
What is news-based trading?
And why is it so successful?
And why is it so successful?
Movers & Shakers
The biggest gainers and losers and WHY it moved
DFDV alerts
High impacting DeFi Development Corp. news events
Weekly update
A roundup of the hottest topics
DFDV
News
- DeFi Development Corp. Releases January 2026 Recap Highlighting Treasury Yield Expansion, UK Progress, and Solana DeFi IntegrationsGlobeNewswire
- DeFi Development Corp.’s dfdvSOL Liquid Staking Token Added as Collateral on Jupiter LendGlobeNewswire
- DeFi Development Corp. to Host X Spaces Event: “January 2026 Business Recap & AMA”GlobeNewswire
- DeFi Development Corp. Appoints Hadley Stern to Board of DirectorsGlobeNewswire
- DeFi Development Corp. to Host X Spaces Event: “Chattin' w/ DFDV UK: Progress and What Comes Next”GlobeNewswire
DFDV
Sec Filings
- 1/29/26 - Form S-8
- 1/29/26 - Form 4
- 1/29/26 - Form 3
- DFDV's page on the SEC website