A trader named loracle.hl on Hyperliquid recently deposited over 616,000 HYPE tokens, worth approximately $36.7 million at the time, and quickly sold the majority of them. The market interpreted this move as a defensive action against a large short position.
Short positions still exceed $100 million
Currently, this trader still holds a short position of approximately 1.8 million HYPE tokens, with the position value exceeding $100 million. According to the report, following recent market adjustments, their unrealized loss has narrowed to approximately $22 million.
The liquidation price is close to $83.33.
The key level currently on traders' radar is the liquidation price of this short position at approximately $83.33. If HYPE continues to rise, pressure on the position will increase, potentially amplifying short-term price volatility.
Large sell pressure is affecting the market.
This incident has drawn attention primarily because continued selling by large holders could add additional selling pressure on HYPE. Especially when the price approaches liquidation levels, the market typically closely monitors relevant addresses and position changes.
If similar-sized sell orders occur in the future, HYPE’s short-term volatility may continue to expand. For platforms like Hyperliquid, where on-chain derivatives trading is active, large position changes themselves often attract significant market attention.