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Gate Square | Polymarket 5/25 Prediction: What will the HYPE price reach by the end of May?

The market is no longer watching HYPE only as another fast-rising altcoin. What is happening now around Hyperliquid is becoming one of the most important live case studies in crypto market structure, whale positioning, and revenue-backed token valuation. The newest development surrounding Loracle’s massive short position is intensifying that debate even further.

On May 25, the whale known as Loracle reportedly placed another enormous short around the $64 region, with total bearish exposure climbing toward extremely aggressive levels. Market discussions indicate the position expanded from roughly $10 million earlier this year to well above $140 million after continuous averaging during the rally.

What makes this situation especially important is that the short was not opened against a weak asset. It was opened against one of the strongest momentum structures currently existing in crypto.

HYPE recently pushed into new all-time highs above $64 while whale activity exploded across the ecosystem. At the same time, institutional narratives around Hyperliquid have been accelerating rapidly. ETF-related demand, rising perpetual futures dominance, and protocol revenue growth created a market environment where bearish positioning became increasingly dangerous.

The most fascinating part is that Loracle did not simply enter one isolated short trade. The whale repeatedly added exposure as price moved higher, effectively averaging into the position while HYPE continued strengthening. That transforms the trade from a short-term directional bet into something much larger — a high-conviction thesis that HYPE’s valuation has expanded too quickly relative to the sustainability of its current growth cycle.

The market now appears divided into two completely different camps.

The bullish side argues that Hyperliquid is no longer behaving like a speculative token and instead resembles high-growth trading infrastructure. The protocol’s Assistance Fund continuously redirects trading revenue toward open-market HYPE purchases, creating automatic structural demand tied directly to ecosystem activity. Combined with ETF inflows, institutional attention, reserve recycling, and growing derivatives dominance, bulls believe the market is still underpricing Hyperliquid’s future role in crypto trading infrastructure.

The bearish side focuses on sustainability risk.

HYPE’s valuation expansion has been extraordinarily fast. Market capitalization growth, all-time highs, and aggressive leverage expansion all happened within a relatively compressed time frame. Critics argue that perpetual trading activity cannot expand infinitely, and if trading volume slows materially, the buyback engine supporting HYPE may weaken much faster than current market participants expect.

This is where Loracle’s influence becomes extremely important psychologically.

Massive whale positions often affect market sentiment even before liquidation levels are reached. Traders begin positioning emotionally around the whale itself. Some attempt to front-run a potential squeeze higher. Others interpret the whale’s persistence as evidence that sophisticated capital expects an eventual correction. In highly leveraged environments, perception itself becomes part of the market structure.

Ironically, the short may also be contributing to HYPE’s strength.

Large visible shorts can create fuel for aggressive squeezes because market makers and momentum traders recognize liquidation clusters above resistance zones. If price keeps grinding higher, short covering itself can become additional buy pressure. This dynamic may partially explain why HYPE continued climbing despite weakening buyback intensity in recent quarters.

The broader market context matters too.

Hyperliquid is increasingly becoming one of the central liquidity hubs in crypto derivatives trading. Whale positioning, ETF narratives, perpetual futures growth, and institutional speculation are all converging around one ecosystem simultaneously. That combination creates unusually high volatility because every major participant group is now active inside the same trade.

For the remainder of May, several scenarios become possible.

If HYPE successfully holds above the psychological $60 region while trading volume remains elevated, momentum traders may continue pushing toward the $68–$72 range, especially if short squeeze pressure intensifies further. If ETF inflows and ecosystem activity accelerate simultaneously, temporary overshoots beyond that range become possible as leveraged shorts get forced out progressively.

However, if market-wide risk sentiment weakens or perpetual trading activity begins slowing, volatility could reverse aggressively. A rapid unwind below key support zones may trigger cascading liquidations on both long and short sides because leverage concentration across the ecosystem is already extremely elevated.

The most important thing traders should understand is that this is no longer a normal altcoin chart.

HYPE is now trading as a complex interaction between:
• perpetual trading volume
• protocol revenue
• ETF narratives
• whale positioning
• liquidity depth
• leverage concentration
• institutional participation
• buyback mechanics

That makes every large whale position far more influential than it would normally be in a standard speculative market.

Loracle’s short is not simply a bet against price.

It is effectively a bet against the durability of Hyperliquid’s entire economic flywheel.

And right now, the market is aggressively testing which side of that equation is stronger.

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