Whale Dumps $36M in HYPE to Shore Up $103M Short on Hyperliquid as Liquidation Risk Builds

Loracle deposited 616,675 HYPE tokens worth $36.76 million and sold most of them on May 22 to raise capital for margin on a 1.8 million HYPE short position with $103.7 million notional exposure. The liquidation price for the short is estimated around $69.90, meaning forced closure would occur if HYPE rises roughly $12 above current levels. HYPE reached an all-time high near $63 on May 21 before a slight pullback. Buying pressure increased after Bitwise launched a spot HYPE ETF on May 12, which attracted $58.73 million in net inflows, and after wallets linked to a16z accumulated over $90 million in HYPE since mid-April.

"Loracle deposited 616,675 HYPE tokens valued at $36.76 million into the platform, then sold the vast majority almost immediately. The capital raised was used to add margin to a 1.8 million HYPE short position carrying over $103.7 million in notional exposure, buying Loracle additional time as the token continues to press toward new highs. 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. Lorcale's latest HYPE transfer, per Lookonchain 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."

"Loracle's short has been building for weeks as he originally held a large long position before flipping entirely to a short around April 20, 2026. 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."

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