The biggest HYPE bear, Loracle, has reduced his short position to $600 million, with the market watching his $590 million spot movement.

BlockBeats News, June 1st, according to Hyperinsight monitoring, the largest short seller of HYPE, known as "Trader Loracle," has been reducing their short position for over 36 hours. The position has been decreased from $108 million to $60 million, with an unrealized loss of $22.5 million.

In addition, the 893,000 HYPE tokens that were unlocked have not been moved after being transferred to their HyperEVM address, with a value of approximately $59 million.

Previously, this whale had unlocked a total of 2 times in the past month, amounting to 1.115 million HYPE tokens with a value of around $63.51 million. In a transparent on-chain record, on May 21st, they sold 557,000 HYPE tokens worth about $33.35 million. The market currently generally expects Loracle to sell the newly unlocked 893,000 tokens. Furthermore, this sale may potentially coincide with the short position reduction. If a spot market sell-off occurs without a synchronized short position stop-loss, their $104 million HYPE short exposure will turn into a naked short exposure. If they are forced into liquidation due to a short squeeze, the potential loss could exceed $100 million, enough to wipe out all their spot gains.