HyperLiquid Well Refuses to Close HYPE Short Despite $22M Drop.
HyperLiquid (HYPE) Well is unwilling to close a large short position, despite the token rally trader sitting on more than $22 million in undisclosed losses.
Main Receptors:
HYPE's 134% year-to-date rally, rising ETF earnings and hot whale stocks put pressure on short sellers. Technical structures suggest a 20% chance of retracement to $51.5–$45.
HYPE whale short exposure increases to more than 100 million dollars
As of Thursday, wallet ‘0x8ef…' with 1.80 million HYPE of 5x cross-margin short, to $102.98 million, entry price near $44.96, according to HypurrScan data.
When HYPE traded around $57.30, the position was down about $22.18 million. The trader had earned $204,522 in cash, but HYPE was unable to offset those mounting losses as it rallied nearly 8 percent on the day.
HYPE Well Eternal Positioning Dashboard. Source: HypurrScan
Its short exposure was estimated at $95 million earlier on Thursday, suggesting that the whale has increased its exposure even as it continues to grow. If the price of HYPE rises to around $69, there is a risk of a breakout.
A strong HYPE stock may exacerbate whale losses.
HYPE has emerged as one of the best-performing cryptocurrencies so far in 2026, rising nearly 134% compared to a 16% decline in the crypto market.
A big part of those gains were seen in May when market focus shifted to the newly launched US Spot HYPE ETF and Coinbase's role as the official treasury issuer of USDC on HyperLiquid.
Since the May 12 launch, these ETFs have attracted $58.73 million amid steady daily inflows, according to data source SosoValue.
US spot HYPE ETFs net income. Source: SoSoValue
A wallet connected to Galaxy Digital bought 158,100 HYPE $8.8 million in two hours, while a new wallet 536,247 HYPE bought $29.87 million from Coinbase in two days, according to data source Arkham Intelligence.
Together, they have accumulated or spent around 694,500 HYPEs worth approximately $38.67 million. Such moves increase losses for the underwater short seller.
RELATED: Hyperliquid eyes 55% price hike after Silicon Valley investor ‘huge HYPE buyout'
As of Thursday, HyperLiquid has seen $36.33 million in liquidity over a 24-hour period, according to CoinGlass. Shorts accounted for $34.29 million, or about 94% of the total, while longs accounted for only $2.03 million.
High Liquidity Information. Source: CoinGlass
That suggests the HYPE rally is driven by forced short covering, which increases the risk of a whale squeeze if prices rise.
HYPE technicians suggest a 20% correction
The HYPE rally is showing signs of exhaustion as the price tests the boundary of the uptrend channel.
A defensive zone sits near $59-$60, the same area where HYPE September 2025 hit a record high before falling more than 65 percent.
HYPE/USD Daily Chart. Source: TradingView
Its daily Relative Strength Index (RSI) rose to around 77, its highest level since May 2025, placing HYPE firmly in overbought territory.
A pullback from this resistance could send HYPE to the 0.786–0.618 Fibonacci retracement range, at $51.5–$45. This range corresponds to the lower trend line of the channel.
In other words, if traders start taking profits near the top of the channel, the price of HYPE risks a drop of up to 20% from current levels.
The short seller will recover $10.4 million–$22.1 million from current levels, although the trade will be profitable below the entry price of $44.96, excluding financing and fees.
