Hong Kong Hedge Funds Linked to $15K Bitcoin Drop as IBIT Options Collapse

Bitcoin plunged nearly $15,000 in a single day on February 5, 2026, the steepest 24-hour slide since 2022. While prices later recovered to about $70,000, the crash appears tied to a Hong Kong hedge fund's levered, out-of-the-money call trade in BlackRock’s IBIT ETF, exacerbated by rising yen-carry funding costs and exposure to volatile silver, according to former equities trader Parker White of DeFi Development Corporation. The fund’s implosion likely triggered a forced liquidation of IBIT shares, amplifying the sell-off and sending Bitcoin reeling. The episode coincided with a broader AI-driven sell-off, uncertainty over a key blockchain bill, and negative sentiment from the “Epstein files.” Regulatory filings and Polymarket wagers may take months to fully validate the theory.