A crypto whale shorted Arm ahead of its earnings report, and was liquidated for $1.8 million within half an hour of opening the position.

In his latest article titled "D is for Dilution", Arthur Hayes notes that after SpaceX, Anthropic, and OpenAI go public, insiders and early investors may unlock and sell large blocks of shares, creating sustained equity dilution pressure that pushes down stock prices and erodes market confidence in the AI sector’s profit outlook. According to his estimates, SpaceX will have roughly 860 million shares set to unlock by the end of June 2027, equivalent to an additional ~50% of its outstanding shares; Anthropic’s early IPO investors could face around 83% dilution. For OpenAI, Hayes predicts its IPO will likely follow a similar structure, gradually releasing holdings from employees and early investors post-listing. Persistent stock price pressure will impact these firms’ financing capabilities: investors may demand higher bond yields or even refuse to provide capital, driving up financing costs for the AI industry and spilling over to upstream data center, chip, and related businesses. If AI-related credit markets cool or freeze, the expansion of the U.S. banking system’s balance sheets may slow, leading to a contraction in dollar liquidity that weighs on the crypto market. Eventually, the U.S. Federal Reserve and other major central banks may inject liquidity to address the crisis, a move that would benefit Bitcoin and crypto assets. Prior to that, Hayes said Maelstrom will remain on the sidelines for now, adding that as data centers come online, increased computing power supply could drive down computing costs, with AI projects like FLOP Network and Genlayer poised to benefit.

Binance founder CZ has retweeted a warning from security researcher Anurag, alerting that fake Trust Wallet websites have recently emerged, tricking users into connecting their crypto wallets under the pretense of "censoring transfers". The malicious JavaScript script supports Trust Wallet, Phantom, and OKX wallets; it can scan wallet balances via a backend API and is preloaded with a fixed receiving address to induce users into transferring assets. The related transaction signing function has been disabled. The identified phishing domain is trastwallet.cam. CZ specifically reminded users to watch for domain discrepancies: .cam is not .com, urging them to avoid accessing fake websites.

Goldman Sachs has described the U.S. midterm election results as a "Blue Wave", which could have a significant impact on artificial intelligence and data center regulation. In its report, the firm stated: "Given that the Democrats won far more seats in the House of Representatives and Senate than expected, we anticipate the Democratic Party will leverage the upcoming fiscal deadline to seek policy concessions, particularly regarding curbs on the Iran war, the repeal of certain tariffs, and the reversal of recently implemented spending-cut measures."

According to TradingBeats monitoring, cross-market trader frenchlaundry has cashed out six major winning predictions, generating approximately $97,200 in profit; all of his short positions on Tesla have also been closed, yielding around $36,900 in profit. On Polymarket, these six positions centered on election results including Democrats controlling both chambers of Congress and multiple states, with a total cost of about $382,200 and a return of roughly 25.4%. Among them, around 100,000 "Democrats control both the Senate and House of Representatives" Yes positions earned ~$31,000 in profit; approximately 306,400 "Democrats win Texas Senate seat" Yes positions yielded ~$50,200. On Hyperliquid, frenchlaundry opened a new Tesla short position yesterday, with a total notional position of around $1,832,900 at an average price of ~$394.32, and closed all positions in the early hours of today. Both legs of this pair trade—betting on Democratic election wins and shorting Tesla—have now been exited.

According to TradingBeats' monitoring, over the past three hours, a large whale's long position in Micron (MU) on Hyperliquid has undergone three consecutive partial liquidations, totaling 3,239.82 contracts, with liquidation proceeds of approximately $2.5117 million, incurring a loss of around $492,700. As of press time, the whale still holds a remaining MU position valued at roughly $2.67 million, with an average entry price of $927.34, an unrealized loss of about $482,200, and the next liquidation price stands at $754.44.

CryptoQuant certified analyst CryptoZeno published an analysis stating that Bitcoin’s current market structure shows cooling cycle momentum, but no extreme signals typical of major historical inflection points have emerged. The 30-day moving average of the Bitcoin Cycle Extremes Index has fallen to 15.8%, landing in the "Watch / Mild Pressure" range. BTC is now around 46% off its prior all-time high, yet the index remains far below levels corresponding to active or extreme market phases. The Cycle Extreme Oscillator also carries cautious signals: its 30-day moving average is near the bottom of its historical range and significantly below the 1.0 threshold. The indicator previously rose sharply during multiple active market phases in early 2021 and between 2024 and 2025, with no such shift seen currently. BTC is closer to a consolidation and low-activity phase than a confirmed cycle bottom. Low indicator readings do not mean selling pressure has been exhausted; further sideways movement or even a new downturn remains possible. Going forward, focus should be on whether the Cycle Extremes Index can sustain a rebound into the "Active Phase" range, and whether the oscillator can recover in tandem. Until these signals materialize, the cooling of market cycle momentum should not be misread as a trend reversal.