Altcoins News

Story: Hyperliquid Short Seller Sits on $22M Loss as HYPE Nears All-Time High

By Bruce Buterin

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HYPE's Rally Hits Technical Resistance. The rally itself has been hard to ignore. HYPE has climbed sharply, stirring real excitement…

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Why Hold a Short Through $22M in Pain?. Short selling near all-time highs isn't new in crypto.

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Market Watches for the Turn. HYPE sitting near resistance is a genuinely tense setup right now.

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Someone is holding a massive short on Hyperliquid's HYPE token. Unrealized losses have climbed to $22 million. And they haven't blinked.

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HYPE has been on a tear lately, pushing close to its all-time high and generating the kind of buzz that usually shakes out short sellers fast. But not this one.

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Twenty-two million dollars in unrealized losses. That's not a rounding error.

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The rally itself has been hard to ignore. HYPE has climbed sharply, stirring real excitement across crypto markets and pulling in fresh buyers who don't want to miss what looks…

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The anticipated pullback, if it comes, could be significant. Some are watching for a drop of up to 20%, with a support zone sitting somewhere between $51.50 and $45.

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For the short seller, that scenario is the whole game. A 20% correction from near all-time highs would flip those $22 million in unrealized losses into something much more…

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More context: Bitwise Calls Hyperliquids HYPE Token Undervalued After 77% Rally

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Short selling near all-time highs isn't new in crypto. It's actually a pretty common strategy among traders who think a rally has gotten ahead of itself.

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Holding through $22 million in unrealized losses says something about this particular investor.

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What's clear is that the broader market is watching. HYPE's price action near resistance creates a kind of pressure test — for the token and for whoever is betting against it.

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And crypto markets have a way of squeezing short sellers harder than anyone expects. Liquidity can thin out fast near all-time highs, and any sharp move upward can trigger…

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HYPE sitting near resistance is a genuinely tense setup right now. Traders on both sides of the position have something to lose.

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