HYPE Whale Loracle's $50.8 Million Spot Unlocked, Market Generally Expects Sell-off

BlockBeats News, May 29th. According to Hyperinsight monitoring, the HYPE's largest short seller "Trader Loracle" has completed the unlocking of 893,000 HYPE spot tokens staked, worth approximately $50.8 million. Loracle has not taken further action at the moment. In the previous month, this whale had unlocked twice, totaling 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), Loracle sold 557,000 HYPE tokens, worth about $33.35 million.

The market currently expects Loracle to potentially sell the newly unlocked 893,000 spot tokens, which would create selling pressure on HYPE. Additionally, this sell-off may accompany a reduction in short positions. If the spot tokens are sold but the shorts do not stop-loss simultaneously, the $104 million HYPE short position will transition into a naked short exposure. If forced liquidation occurs due to a short squeeze, the potential loss could exceed $100 million, enough to wipe out all spot gains.

Its current main positions on the futures side are: HYPE shorts ($104 million) with a liquidation price of $90; BTC shorts ($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. The addresses are as follows:

Contract Address: 0x8def9f50456c6c4e37fa5d3d57f108ed23992dae

On-chain Staking Address: 0xE44bd27c9F10fa2F89fdb3ab4B4F0E460da29EA8

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