HYPE’s biggest short, Loracle, unlocks today $50.8 million in spot: is it a market dump or forced short covering?

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Deep Tide TechFlow message. On May 28, according to Hyperinsight monitoring, HYPE’s largest short trader, “trader Loracle,” will unlock 893,000 HYPE spot held in its staking within the next 7 hours, worth approximately $50.8 million—this is the whale’s largest single unlock in recent times. Its total staking size is approximately 2.009 million HYPE, worth about $120 million.

A month earlier, the whale had unlocked a total of 1.115 million HYPE in 2 times (worth approximately $63.51 million). In on-chain records that can be clearly tracked, it sold 557,000 HYPE on May 21 (the day HYPE broke to a new high), worth about $33.35 million.

The market generally expects that Loracle will sell the newly unlocked 893,000 spot tokens; at that time, HYPE will absorb the corresponding sell pressure. In addition, this selloff may, with some probability, be accompanied by short position reduction. This is because if the spot is sold without corresponding stop-losses for shorts, its $104 million HYPE short exposure would turn into a one-sided naked short exposure. If it is hit by a short squeeze leading to liquidation, potential losses could exceed $100 million, enough to wipe out all of its spot gains.

Current major positions on the derivatives side: HYPE short ($104 million), liquidation price $90; BTC short ($34.32 million), liquidation price $208,000.

HYPE-1.97%
BTC-2.65%
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