A single day of volatility hit bullish Shiba Inu traders hardest as more than $382,000 in SHIB futures positions were liquidated — roughly $365,660 from longs versus just $17,320 from shorts — according to on-chain trackers. The surge in forced closures coincided with the unexpected reactivation of a wallet that had been dormant for nearly 10 months, drawing fresh scrutiny to a memecoin already under pressure.
Arkham Intelligence data shows the wallet’s return began with a small “test” transfer of 10 million SHIB via a MetaMask swap. That was followed by three large transfers routed through BitGo’s Forwarder Smart Contract: about 112 billion SHIB, then roughly 190 billion, and finally about 99 billion. In total, the address moved 399,989,999,938 SHIB and was left with just 110 SHIB after the activity. The address had been largely inactive since around last August.
Interpreting the move isn’t straightforward. BitGo is widely used by institutional custodians for over-the-counter settlements or to shift assets into cold storage — operations that don’t show up as sell orders on public exchanges. So while the sheer scale of the transfers is notable, it doesn’t prove those tokens were dumped on the market. What is clear is that a holder controlling tens of millions of dollars in SHIB chose to act during a week of broader crypto weakness.
SHIB itself has been sliding: the token fell about 16% over the past week, breaking the psychological $0.000005 support level, and was trading near $0.000004535 (down about 3.5% in the previous 24 hours). That decline has nudged the memecoin toward the lower end of the top 30 by market cap; SHIB currently sits at 29th with a market value near $2.65 billion.
The timing — a whale reawakening during a market selloff that triggered liquidations — makes the transfers impossible to ignore, even if their intent remains unknown. Traders and on-chain analysts will be watching subsequent movements and exchange flows closely for any sign whether these tokens were moved for custody, OTC settlement, or imminent selling.
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