$59 million HYPE Spot Price "Sell-off Signal"? Loracle Initiates Slight HYPE Short Position Reduction

BlockBeats News, May 30, according to Hyperinsight monitoring, the largest HYPE short seller "Trader Loracle" staked 893,000 HYPE tokens unlocked in the early hours of yesterday, and today further transferred to their HyperEVM address, worth approximately $59 million. The current spot position has not seen any further action. It is noteworthy that Loracle's short position reduction started 2 hours ago, with a reduction of approximately $500,000 in a single transaction at a frequency of about $500,000. The total reduction is about $3 million, and the massive short position still holds, currently valued at $114 million, with an unrealized loss of $35.5 million. Approximately $27 million of their $27 million collateral is used to maintain this position.

Previously, the whale had unlocked a total of 1,115,000 HYPE tokens twice in the past month, worth approximately $63.51 million. In a trackable on-chain record, they sold 557,000 HYPE tokens on May 21, worth about $33.35 million. The market currently expects Loracle to sell the newly unlocked 893,000 spot HYPE tokens. In addition, this sale may probably be accompanied by a short position reduction. If the spot tokens are sold without synchronous short stop-loss, their $104 million HYPE short position will turn into a unilateral naked short exposure. If a short squeeze liquidation occurs, the potential loss may exceed a billion dollars, enough to wipe out all their spot gains.

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