Yesterday's Binance hack trading review 1. The moment the Binance hack suspicion broke, major alts like BTC and ETH fell in sync. 2. Figured chasing the majors with shorts wouldn't be that profitable, so I tracked down the hacker's wallet address. 3. Initially the hackers split coins by wallet and transferred them (e.g., to sell PEPE, they'd send gas fees + PEPE to a different burner wallet for disposal). 4. So I set tracking on wallet 0x5227f603c1ee34ce3c06efe6477003bdfccb2f8c and opened high-leverage shorts whenever alerts popped, HODLing until they drained all their coins. 5. At first, even when transactions appeared, the market didn't react much, but later even a single transfer transaction would trigger immediate reaction, making it hard to get good entry levels. So I thought of a different approach. 6. Looking at the data, they stole 70 types of assets total, and because other chains have freeze risk, they can only dump on Ethereum. The pattern showed they were selling starting with high market cap coins. 7. Due to margin limits I couldn't short all 70 types at once, so I had to accumulate shorts per pair, hit hard with one big candle, then move to the next pair to maximize profits. 8. So following their selling pattern, I started grasshopper trading—hitting high market cap + large hack coins in order with shorts across 4-5 pairs at a time, opening then moving positions (LINK, ENA, ZAMA, RSR, ZRO, FET, ERA, GTC, CFG, RED, IMX, OGN, APE, RE, SYRUP, COTI, PROM, SOPH). 9. It went smoothly in order for a while, then suddenly the pattern twisted and they started dumping multiple pairs at once from the main wallet. Turned out they were just dumping sub-$100M market cap coins directly from the hacked wallet. At that time, low market cap pairs like RSR and COTI (under $100M) were crashing hard even with just $1M dumps. 10. The Lazarus (presumed) hacker, considering liquidity, seems to be parceling coins in N-thousand-dollar chunks to cushion market impact somewhat + meanwhile some mutant projects with freeze contracts like ERA showed up + sometimes huge green candles appeared right after shorts were drained, so I reduced position size and started preparing for the finale. 11. Guys like PROM moved their wallet separately but weren't dumping, so I was like what? I assumed DWF line, lots of volume control by MM, so I went in with the biggest short size, but turns out there was no DEX liquidity so they couldn't dump
Just in case anyone's shorting—except for era, there seems to be quite a bit still left to liquidate, and you need to be careful with ones that have frozen contracts. I think OGN and IMX will dump their full stashes soon, and for high-market-cap friends like SKY, shorting isn't that profitable, so I've set up short positions mainly on low-cap stuff. Oh, and for this wallet (https://debank.com/profile/0xdd6dbbe67262ccc9b1824de1257999efc6c52296), it hasn't even started dumping PROM yet, but I'm not sure if it's frozen or what. This one got $5M dumped out of a $100M market cap, so it seems like a real finale. (Assuming DWF line project volume control, the liquidity pool could be even thinner. Hard to find with no Arkham.) I'm thinking of taking a stop-loss at an appropriate level and wrapping up around here. To those who responded since early morning, thanks for your hard work. Hope you get some returns for that all-nighter. GNGN
