Trader Loses $42 Million in HYPE Short Bet
- Onchain tracker Lookonchain reports that trader loracle.hl lost $42.2 million in gains from a short position on HYPE over an 18-day period.
- The trader incurred an additional loss of $5.19 million as HYPE’s price soared to nearly $70 on May 31.
- HYPE’s price increase is driven by Hyperliquid’s Assistance Fund, which reinvests approximately 99% of platform fees into buying back the token.
- Hyperliquid generated over $896 million in revenue and processed more than $176 billion in volume over the past year, contributing to sustained buy pressure on HYPE.
Loracle.hl’s significant losses highlight the risks associated with shorting tokens like HYPE, whose buyback mechanisms create a challenging environment for bearish traders. The situation underscores how leveraged trading can amplify both profits and losses dramatically.
The ongoing rally of HYPE, fueled by structural buybacks, has repeatedly pressured short positions and resulted in substantial financial setbacks for skeptics betting against it. Source
