Silver Wiped Out 28% in a Day as Bank Short Covering Raises New Manipulation Fears

The Silver price saw a brutal selloff on Friday, dropping 28% in a single session and erasing massive value across the market. The move shocked traders, not just because of the size of the decline, but because of what appeared to happen at the lows.

As silver price hit its bottom, data shared by traders showed major short positions being closed at nearly the exact same moment price stopped falling. This immediately raised questions across social media and trading circles, especially given the metal’s long and controversial history with large banks.

Top trader NoLimit pointed out on X that JPMorgan appeared to close short exposure right as silver found its low. 

While this claim has not been independently verified, the timing alone was enough to fuel fresh debate about whether large players once again had an edge smaller traders did not.

Why Traders Are Suspicious

Silver is not a market with a clean past. Between 2008 and 2016, several major banks were caught and fined for manipulating precious metals markets. These cases were not theories or rumors. They were proven in court and settled with regulators.

JPMorgan Chase settled with a $920 million fine in 2020 and accepted responsibility for spoofing in precious metals. Scotiabank was fined $127.5 million for fraudulent trading.

SBC paid penalties related to spoofing activity that stretched nearly a decade. Deutsche Bank and Morgan Stanley were also fined for similar behavior in earlier years.

Some of these cases continued to surface through additional convictions and penalties as recently as 2025. Because of this history, any sharp move in silver price tends to attract extra scrutiny.

What Happened This Time To Silver

Friday’s drop was fast and violent. Silver prices broke down through several levels of support with little resistance, pushing leveraged longs out of the market. As the price fell, market liquidity dried up, and volatility went through the roof.

Once the silver price reached its low, aggressive short covering followed. That alone is not unusual. What caught traders’ attention was how clean and precise the timing appeared to be.

To be clear, there is no public proof that banks manipulated Friday’s crash. No regulator has made such a claim. What exists is a pattern that looks familiar to traders who have watched this market for years.

Large players often have better data, better execution, and better risk control. That advantage does not automatically mean illegal activity. But in a market with a documented record of abuse, optics matter.

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Why This Matters Now For Silver

Silver has long been viewed as a pressure valve in the broader financial system. It sits at the crossroads of industrial demand, inflation hedging, and monetary policy. When silver moves this violently, it tends to signal stress somewhere else.

The timing of this crash also matters. Global markets remain fragile, liquidity conditions are tight, and confidence is thin. In that environment, sharp price moves can feed distrust quickly.

For retail traders, the takeaway is not that silver price is “rigged” beyond participation. It is that leverage and thin liquidity can turn against you fast, especially in markets dominated by large institutions.

However, Silver’s 28% collapse has reopened old wounds. The metal’s history with bank manipulation makes traders quick to question unusual price action, especially when short covering lines up perfectly with market bottoms.

At the same time, allegations remain just that, allegations. No evidence has been presented showing wrongdoing tied to this specific crash.

One thing is clear: silver remains a high-risk market where size, speed, and information matter. Until that changes, sharp price moves will keep raising uncomfortable questions.

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The post Silver Wiped Out 28% in a Day as Bank Short Covering Raises New Manipulation Fears appeared first on CaptainAltcoin.