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

BlockBeats News, May 31st, according to Hyperinsight monitoring, the largest short seller of HYPE known as "Trader Loracle" has been reducing their short position for 9 consecutive hours, with each reduction ranging from $400,000 to $1.4 million. With a massive initial short position, they have currently reduced it by $7 million, leaving a remaining short position value of a staggering $108 million, with an unrealized loss of $34.6 million. Approximately $27 million of their $27 million margin is being used to maintain this position.

In addition, the 893,000 HYPE tokens they unlocked today have been further transferred to their HyperEVM address, with a value of approximately $59 million. Currently, there have been no further actions regarding these unlocked tokens.

Previously, over the past month, this 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, they sold 557,000 HYPE tokens on May 21st, worth about $33.35 million. The market currently generally expects Loracle to sell the newly unlocked 893,000 tokens. Furthermore, this sell-off may potentially coincide with the short position reduction. If the tokens are sold off but the short position does not adjust accordingly, their $104 million HYPE short position will turn into a unilateral naked short exposure. If they are forced to liquidate due to a short squeeze, the potential loss could exceed $100 million, enough to wipe out all their spot gains.