Bitcoin Was Built To Escape The Rigged System — They Just Built The Cage Around It
Tom Bilyeu examines allegations that Jane Street manipulated Bitcoin prices through regulatory loopholes available to authorized participants in BlackRock's Bitcoin ETF, arguing this mirrors broader Wall Street exploitation of retail investors.
The gist
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Bilyeu says Jane Street allegedly dumped Bitcoin at exactly 10 a.m. daily using low-liquidity windows to trigger cascading liquidations of leveraged retail traders.
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Authorized participants in Bitcoin ETFs can hide short positions and derivatives while only disclosing long positions, creating a major information gap over ordinary investors.
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Jane Street allegedly had advance knowledge of Terraform's $150 million withdrawal and exited before the Terra collapse wiped out $40 billion in value.
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The alleged manipulation stopped after the lawsuit went public on February 23rd, with Bitcoin rising 10% in 48 hours and $213 million in shorts liquidated.
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