HuoXing Finance reports, according to on-chain analyst Ai Yi, trader Loracle opened a 3x short position on PONS on Hyperliquid starting September 3, holding 25.04 million PONS (approximately $19.41 million) at an average entry price of $0.6553, accounting for 19% of Hyperliquid’s total PONS open interest. The trader continues to add to the position and is currently experiencing an unrealized loss of nearly $3 million. Loracle independently created a zero-fee fork of PONS. On September 6, overseas analyst @mlmabc posted publicly seeking funding to collectively target this short position, stating that seven-figure amounts have already been pledged. Loracle’s short liquidation price is $1.83, meaning PONS must rise another 128% to trigger liquidation. A similar campaign in March 2025 against a 50x leveraged Bitcoin short on Hyperliquid previously drew significant attention.
Loracle's 3x PONS Short on Hyperliquid Incurs $3M Floating Loss
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Summary
A trader known as Loracle has incurred a $3 million floating loss on a 3x short position in PONS on Hyperliquid. As of September 3, 2026, Loracle holds 25.04 million PONS at an average entry price of $0.6553, valued at approximately $19.41 million—representing 19% of Hyperliquid’s total PONS position. The short position would be liquidated if PONS reaches $1.83, a 128% increase from current levels. Traders are advised to monitor on-chain trading signals and consider implementing a stop-loss strategy to manage risk. The trader continues to accumulate the position. A similar short squeeze occurred in March 2025 involving a 50x BTC short.
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