Key takeaways
- Oracle sold 616,675 HYPE worth $36.76 million on May 22 to defend a $103.7 million short sale in Hyperliquide from liquidation.
- Bitwise’s HYPE ETF has attracted $58.73 million since its launch on May 12, fueling sustained buying pressure on the token.
- Loracle’s $103 million short sale faces a forced liquidation at $69.90, about $12 above current HYPE levels.
Oracle Dumps HYPE to Defend Massive Shorts as Squeeze Risk Rises
Onchain data shows that Loracle, the trader holding the largest public short on the decentralized perpetual exchange Hyperliquide, deposited 616,675 HYPE tokens worth $36.76 million on the platform, then sold the vast majority of them almost immediately.
The capital raised was used to add margin to a 1.8 million HYPE short position carrying a notional exposure of over $103.7 million, giving Loracle additional time as the token continues to head towards new highs.
HYPE reached an all-time high near $63 on May 21 before pulling back slightly. Loracle’s estimated liquidation price sits at around $69.90, meaning the position would be closed if HYPE climbs around $12 from current levels, a gap that is steadily narrowing as institutional buyers enter the market.
Two major catalysts appear to have driven HYPE higher in recent weeks. The first includes the launch of Bitwise spot HYPE exchange-traded funds (ETFs) on May 12attracting $58.73 million in net inflows since its debut and providing regulated US investors with their first direct exposure to the token.
Second, chain detectives have recently identified portfolios linked to venture capital firm a16z as having accumulated over $90 million (in HYPE) since mid-April, positioning the firm as the sixth largest holder and signaling strong institutional conviction in Hyperliquide’s trajectory.
$103.7M HYPE Short Approaches Danger Zone as ETF Flows Fuel Rally
Loracle’s short position has been growing for weeks, as it initially held a significant long position before switching entirely to a short position around April 20, 2026, a contrarian bet that HYPE would decline from high levels.
As the token has risen, trading has moved significantly against it with each capital injection (like today’s $36.76 million sale), delaying but not eliminating the risk of liquidation. If HYPE reaches $69.90, the position automatically closes regardless of Oracle’s actions.
Bitcoin.com News has previously covered Hyperliquid’s volatility, featuring the platform previously erasing $36.5 million in short positions in a single session as HYPE climbed towards its previous all-time high. The current setup shares structural similarities, given concentrated short exposure, rising token prices, and ETF-driven inflows, creating sustained buying pressure that a single trader’s margin deposits may not be able to exceed indefinitely.
