Source: Bull Theory, encryption analyst; Compiled by: Golden Finance

Jane Street’s secret trading trick is to buy Bitcoin in large quantities and then sell it within seconds, driving the price down and profiting from the short position.

They used the same 10am rigged algorithm in the Indian market and made $4.23 billion, leading the Securities and Exchange Board of India (SEBI) to temporarily ban them from trading.

Their operation process is very simple:

1) Obtain billions of dollars in funding from investors;

2) Buy spot Bitcoin at, say, $68,000;

3) Large amounts of short selling through options or derivatives;

4) Use algorithms to sell large amounts of Bitcoin within a few minutes, while triggering panic selling in conjunction with low liquidity or negative news;

5) Price plummets to $62,000;

6) Close the short position and make a huge profit while only losing 5% of the spot price;

7) Buy spot Bitcoin again at a price of $62,000, squeezing short positions, creating FOMO sentiment, and pushing up prices;

8) Large amounts of short selling again...

The cycle repeats.

In India, Jane Street still has $560 million frozen in an escrow account by SEBI, and the market manipulation case is still pending.