Top Trader on Hyperliquid Opens $316K Short on $HYPE Despite Bullish Momentum

According to Whale Watch Perps, on October 3, 2025, a top trader by profit and loss (PnL) on Hyperliquid had increased their short position to 316.83K of $HYPE. The last short offered by the trader is at a price of $49.90 with a value of a short of $15.28K, giving the trader an average purchase price of 49.68. As per the platform information, the liquidation point of the trader is pegged at $2,665.38, which is very high when compared to the market levels, and therefore the leverage computation or reporting dynamics are suspect.

Hyperliquid and HYPE market data

Hyperliquid is a Layer 1 blockchain that is optimized to support perpetual futures and trading. Its original coin, Hype, has been performing well in the past weeks. As of October 3:

• Weekly Price Change: +20.50%, compared to the crypto market on the whole ( +10.30%).
• Daily Trading Volume: approximately, 634 million which represents a growth rate of 8.4% over the last day.
• All-Time High (ATH): BTC 0.0005075.
• All-Time Low (ATL): BTC 0.00003961.
• Current Protection: Trading 15.9% below ATH but 1, 209.00 above ATL.

Risk and Leverage Analysis

The change of position is an indication that the trader bets against the short-term momentum of $HYPE. The trader has shorted a total of about 6,377 tokens at an average price of entry of 49.68. According to the liquidation price of 2,665.38, which is accurate, the extreme leverage or the data anomaly. Liquidation of such positions would usually be around the price of $40 60.

As the momentum of the shares in a weekly basis already drives the price of $HYPE upward, it is a risky short position. The sensitivity of leveraged trades could be illustrated by the fact that a slight price movement of 1% would create substantial unrealized losses.

Broader Market Context

The international crypto economy has grown over 10 percent within the last seven days, and liquidity on the decentralized exchanges is getting stronger. Since Hyperliquid deals in derivatives and perpetuals, it still appeals to high-end traders. Nevertheless, the aggressive short vs the bullish price action of $HYPE brings out the conflict between the speculative strategies and market fundamentals.

In the event that the bullish trend of Hype persists, the trader will incur some serious losses unless he increases the margin. On the other hand, a climb back to $40 would make huge profit. The market response to the suggested token burn might determine the success, as it might cause long-term scarcity and price boost.