A whale lost $23.52M shorting $HYPE as the token surged, highlighting the risks of leveraged trades in volatile markets.
$HYPE defied the broader altcoin slump, rebounding from $13 to over $30 despite exploit-driven dips and heavy short pressure.
With RSI hitting 84.73 and whales still active, $HYPE shows momentum but signals short-term caution amid overbought conditions.
According to Spot On Chain, a major whale has realized a $23.52 million loss after closing a heavily leveraged short position on $HYPE. The whale had shorted 1.875 million $HYPE tokens valued at $57.14 million with 5x leverage. Over the past 23 days, they deposited $30.5 million USDC into Hyperliquid to maintain this position. However, with $HYPE’s recent surge, they were forced to exit. Only $6.98 million remains in their account, highlighting the trade’s devastating outcome. This incident underscores the risks of leveraged shorting in volatile altcoin markets.
HYPE Defies Broader Altcoin Trend
Despite broader altcoin stagnation, $HYPE has shown remarkable resilience and upward momentum. It has been pushing toward all-time highs, reflecting strong fundamentals and growing investor conviction. The token is currently trading at $34.65, showing a 13.70% drop from recent peaks. Nevertheless, the climb from April’s macro bottom at $13-15 marks a powerful recovery.
Besides, the four-hour timeframe highlights intraday volatility, revealing rapid swings from sub-$15 to over $30. Market structure analysis shows three distinct phases. Initial price appreciation set the tone, followed by a steep decline during the “ETH exploit.” Prices fell sharply to $12-15, creating a visible valley formation.
Exploits Mark Turning Points
Additionally, a recovery followed, but the “JELLY exploit” disrupted momentum again. However, the bulls regained control near the $13-15 support zone. This bottom sparked the current rally, pushing $HYPE above $30. The RSI now stands at 84.73, indicating an overbought market. Hence, short-term consolidation or a pullback may follow.
Source: cpt n3mo
Moreover, recent whale activity shows continued high-stakes trading. Before the loss, the whale had doubled down with a $1.8 million USDC deposit. This move increased their position to $29.1 million, exposing them further to looming liquidation at $25.01. Consequently, market watchers flagged this as a risky bet against strong momentum.
Technical indicators suggest sustained buying interest. Market order bubbles reveal clustered volume levels at key price points. This activity points to significant institutional involvement. However, missing volume data limits a deeper liquidity analysis.
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