HYPE's Biggest Bear Whale Loracle Faces $508 Million USD Spot Unlock Today: Will There Be a Sell-off or Forced Short Covering?

BlockBeats News, May 28th, according to Hyperinsight monitoring, HYPE's largest short seller, "Trader Loracle," is set to unlock 893,000 HYPE spot tokens from their stake in the next 7 hours, worth approximately $50.8 million, marking the whale's largest single unlock recently. Their total staked amount is around 2.009 million HYPE tokens, valued at about $120 million.

Over the past month, the whale has unlocked a total of 2 times, amounting to 1.115 million HYPE tokens (valued at around $63.51 million). In a transparent on-chain record, on May 21st (the day HYPE hit a new all-time high), they sold 557,000 HYPE tokens, worth about $33.35 million.

The market widely expects Loracle to sell the newly unlocked 893,000 spot tokens, which will put pressure on HYPE's price. Moreover, this sell-off may be accompanied by a reduction in short positions. If spot selling occurs without synchronized short position stop-loss, their $104 million HYPE short position will turn into a naked short exposure. If a short squeeze occurs, the potential losses could exceed $100 million, enough to wipe out all their spot gains.

Current major positions on the contract side: HYPE short ($104 million) with a liquidation price of $90; BTC short ($34.32 million) with a liquidation price of $208,000.

Hypurrfun founder Loracle, real name Laurent Zeimes, was previously active in the Hyperliquid ecosystem and is considered one of the early contributors. Addresses:

Contract Address: 0x8def9f50456c6c4e37fa5d3d57f108ed23992dae

On-chain Staking Address: 0xE44bd27c9F10fa2F89fdb3ab4B4F0E460da29EA8

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