As an analyst, I’ve been tracking a significant move by a whale trader known as Loracle. They recently deposited and quickly sold 616,675 Hyperliquid tokens – around $36.76 million worth. It appears they used the funds from this sale to shore up a large short position, which had an exposure of over $103 million, as the token approached its record high price.
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Key Takeaways:
- Loracle sold 616,675 HYPE worth $36.76M on May 22 to defend a $103.7M short on Hyperliquid from liquidation.
- Bitwise’s HYPE ETF drew $58.73M since its May 12 launch, fueling sustained buying pressure on the token.
- Loracle’s $103M short faces forced liquidation at $69.90, roughly $12 above current HYPE levels.
Loracle Offloads HYPE to Defend Massive Short as Squeeze Risk Mounts
As an analyst, I’ve been tracking onchain data and noticed something interesting. Loracle, known for holding a large short position on Hyperliquid, recently deposited a significant amount of HYPE – 616,675 tokens, worth around $36.76 million – and then quickly sold off almost all of it. This rapid deposit and sale is definitely a move I’m watching closely.
The funds raised were used to increase the potential profit on a $1.8 million short bet against HYPE, which represents over $103.7 million in total value. This gives Loracle more time as the value of its token continues to rise.
HYPE hit an all-time high near $63 on May 21 before pulling back slightly. Loracle’s estimated liquidation price sits at approximately $69.90, meaning the position would be forced closed if HYPE climbs roughly $12 from current levels, a gap that has been narrowing steadily as institutional buyers have entered the market.
Two major catalysts seem to have driven HYPE higher in recent weeks. The first includes the launch of Bitwise spot HYPE exchange-traded fund (ETF) on May 12, drawing $58.73 million in net inflows since debut, and giving regulated U.S. investors their first direct exposure to the token.
Secondly, onchain sleuths recently identified wallets linked to venture capital firm a16z as having accumulated over $90 million (in HYPE) since mid-April, positioning the firm as the sixth-largest holder and signaling strong institutional conviction in Hyperliquid’s trajectory.
$103.7M HYPE Short Nears Danger Zone as ETF Inflows Fuel Rally
Loracle began hinting at a potential downturn weeks ago. He initially invested heavily in HYPE, but then completely reversed his position around April 20, 2026, betting that its price would fall from its recent high.
As the token has surged, the trade has moved significantly against him with each capital injection (like today’s $36.76 million sale), delaying but not eliminating the risk of liquidation. If HYPE reaches $69.90, the position closes automatically regardless of Loracle’s actions.
Bitcoin.com News has covered Hyperliquid’s volatility before, with the platform previously wiping out $36.5 million in short positions in a single session as HYPE climbed toward its prior all-time high. The current setup shares structural similarities, given concentrated short exposure, rising token price, and ETF-driven inflows creating sustained buy pressure that a single trader’s margin deposits may not be able to outrun indefinitely.
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2026-05-22 14:59