HYPE Short Position Reduction by Major Trader Continues

On June 1, Hyperinsight reported that the largest short position held by trader Loracle on HYPE has been reduced for over 36 hours, decreasing from $108 million to $60 million. According to BlockBeats On-chain Detection, the remaining open position has an unrealized loss of $22.5 million. Additionally, 893,000 HYPE tokens, valued at approximately $59 million, were unstaked and transferred to Loracle's HyperEVM address but have not moved further. In the past month, this whale has unlocked a total of 1.115 million HYPE tokens, valued at around $63.51 million, in two separate instances. On May 21, Loracle sold 557,000 HYPE tokens, valued at approximately $33.35 million, according to clear on-chain records. Market expectations suggest that Loracle may sell the newly unlocked 893,000 HYPE tokens. This potential sale could coincide with further reductions in the short position. If the tokens are sold without a corresponding stop-loss on the short position, Loracle's $104 million HYPE short exposure could become a one-sided naked short. In the event of a short squeeze, potential losses could exceed $100 million, potentially wiping out all gains from the spot holdings.