Loracle liquidated his HYPE short position for 9 hours straight, with $59 million in spot unchanged

May 31 – Per monitoring from Hyperinsight via its Telegram channel, “Trader Loracle” – HYPE’s largest short seller – has been trimming its short position for nine consecutive hours, with each reduction ranging from $400,000 to $1.4 million. Starting from a massive initial short position, Loracle has now cut $7 million worth of shorts, leaving an outstanding short position of $108 million and an unrealized loss of $34.6 million. Roughly all of its $27 million margin is currently being used to hold this position. Separately, the 893,000 HYPE tokens Loracle unlocked today were transferred to its HyperEVM address, valued at approximately $59 million. No additional actions have been taken regarding these unlocked tokens as of press time. Looking back, over the past month, this whale has unlocked HYPE tokens twice for a total of 1.115 million tokens, worth around $63.51 million. Per on-chain records, Loracle sold 557,000 HYPE tokens on May 21 for roughly $33.35 million. The market now widely expects Loracle to offload the newly unlocked 893,000 tokens. This planned sell could align with its ongoing short position reduction—but here’s the key risk: if Loracle sells these tokens without adjusting its short position accordingly, its $104 million HYPE short will turn into an unhedged naked short exposure. In the event of a short squeeze that forces liquidation, potential losses could exceed $100 million, wiping out all of its spot gains entirely.