- HYPE's stock price has surged above $59, just a few cents away from its all-time high.
- This rally closed approximately $36.5 million in short positions.
- Coinbase's integration and the launch of new ETFs are driving upward momentum.
Hyperliquid's hype token has suddenly returned to near all-time highs after a explosive rebound that wiped out millions of short positions. HYPE surged to approximately $59.06 on Thursday morning, the highest level since 2026, just a few cents below its all-time high of $59.33 set in September 2025.
This move pushed Hyperliquid's weekly gain to nearly 50%, pushing its market cap above $14 billion and helping the project overtake WhiteBIT Coin to become the 11th-largest cryptocurrency by market capitalization. Market value In other words, things are moving quickly.
Short sellers are completely crushed
This rally triggered a brutal wave of liquidations for HYPE short sellers. As the token price surged, approximately $36.5 million in short positions were liquidated, while only about $1.4 million in long positions were cleared during the same period.
This supply-demand imbalance clearly indicates that some market participants significantly underestimated Hyperliquid's upward momentum. Once the price broke through key resistance levels, forced short covering likely further fueled this rally.
To be honest, this has become a recurring theme. Cryptocurrency markets have recently tended to be overly pessimistic during strong upward momentum phases, leading to sharp, squeeze-driven declines once prices accelerate upward.
The integration of Coinbase and USDC is changing the landscape.
Hyperliquid’s recent strong performance appears to be linked to its broader strategic shift regarding USDC infrastructure and fund management. Under the new framework named AQAv2, Hyperliquid has adopted a strategy aligned with Coinbase as its fund deployment partner, while integrating Circle’s cross-chain transfer protocol into its system.
This mechanism aims to more directly link platform revenue with user deposits, rather than relying entirely on highly volatile trading activity. Analysts believe this structure helps stabilize token buybacks even during market downturns, making it increasingly attractive to investors seeking more sustainable cryptocurrency business models.
According to reports, recent revenue share income is expected to range between $135 million and $160 million, and if balances continue to grow, the revenue ceiling could reach as high as $300 million to $500 million. These figures have undoubtedly drawn the attention of traders.
ETF momentum continues to build
Another important catalyst is the launch of the spot price on May 15. Popular ETFs issued by 21Shares and Bitwise. As demand for crypto investment products continues to grow globally, the launch of these ETFs helps increase the token’s visibility among institutional investors.
Interestingly, despite reports that traditional financial giants such as the Chicago Mercantile Exchange (CME) and the Intercontinental Exchange (ICE) are allegedly lobbying regulators to crack down on illicit trading, the bullish momentum continues. On the Hyperliquid side, this controversy has not slowed market momentum; instead, it appears to have sparked even greater interest among traders.
This reaction often occurs when the market begins to view a project as disruptive enough to overturn the existing landscape and threaten the position of established companies. Whether this perception can be sustained over the long term is an entirely different question.
Some traders believe the market is overly optimistic.
Despite the explosive market rally, not everyone believes this upward momentum will last. Some analysts and commentators have begun warning that, as market enthusiasm continues to build, Hyperliquid may be entering a bubble phase.
Critics have specifically pointed out that increased institutional attention may be a warning sign rather than a purely positive one. One concern is the growing number of participants waiting in line to unfreeze their positions within Hyperliquid’s native ecosystem, with reports indicating that substantial funds are awaiting exit from locked positions.
Additionally, the upcoming token unlock represents approximately 2.54% of the total supply and will be allocated to the Hyperliquid development team. Token unlocks often create temporary selling pressure, especially after significant price increases, as early holders may seek to lock in profits.
However, for now, this momentum remains unstoppable. With high visibility, Coinbase integration, strong revenue prospects, and ongoing short squeezes, Hyperliquid has quickly become one of the most talked-about projects in crypto.