- An unknown entity shorted 1.67M HYPE ($51.65M), creating tight risk levels and sparking a 9% liquidation wick on Nov 9.
- HYPE price dropped $39→$32 with 1.1M more shorts added on Binance, while funding rates turned negative for the first time in weeks.
- Community calls for transparency grow as token unlocks loom, while analysts warn sell pressure may persist despite team assurances.
An unknown entity recently initiated massive short positions on HYPE. According to reports from MLM on X, this entity shorted 1,677,529 HYPE ($51.65M) over several days across 54 different wallets, averaging a price of $34.2087. The liquidation price sits just 12% above the current trading level at $34.6703, indicating extremely tight risk management. Besides creating a liquidity squeeze, this cluster reportedly caused the 9% liquidation wick observed on November 9th.
Moreover, during the sharp price drop from $39 to $32, additional shorting activity emerged on Binance. Approximately 1.1M HYPE ($30.8M) in open interest was added in just a 10-hour window while funding rates turned negative for the first time in three weeks.
The anonymous entity leveraged high-risk positions, maintaining roughly $9M in total margin across wallets, which has already yielded $5.34M in unrealized profit on shorts. Additionally, blockchain analysis links the wallets to minor transactions like an $8K Arbitrum USDC transfer to rektober, and possible connections to Solana and ETH wallets under the name “okwan.” This entity may also have ties to $WOULD, a token that previously reached a $700M market cap on Solana.
Community Reactions and Analyst Insights
The news has stirred community discussions, especially around potential unlocks from the Hyperliquid team. Andy, a long-term HYPE holder, urged transparency on how upcoming token unlocks will be managed, emphasizing community trust. He stated, “The team & airdrop recipients finally able to sell is going to ruffle feathers until you address the community head on.”
Meanwhile, Arthur Hayes provided a cautionary perspective, highlighting that only substantial revenue growth could counteract ongoing uncertainty. He added, “Even if the team pinky swears to not sell, there is nothing holding them to that. You have to assume a >0% amount of daily sell pressure.”
On the technical side, analyst Casper flagged a short trade setup for HYPE, noting a clean breakdown with a bearish pullback into a key confluence zone. Casper expects potential rejection if prices attempt to push back into the $32.4–$32.8 range, citing liquidity draws and unclear BTC trends.
