Whale Loses $23.5M Shorting HYPE Token
A whale takes a $23.5M hit after betting against $HYPE with 5x leverage on Hyperliquid.
- Whale shorted $57.14M in HYPE with 5x leverage.
- Took a massive 77% loss as HYPE price surged.
- Only $6.98M remains from an original $30.5M USDC deposit.
A Risky Bet Gone Wrong
In a high-stakes move that backfired, a crypto whale has taken a massive $23.52 million loss after shorting the trending token $HYPE. The position, valued at $57.14 million and leveraged 5x, was closed after 23 days of mounting losses. The whale had been trying to hold on, depositing a total of $30.5 million in USDC into the decentralized exchange Hyperliquid to keep the short alive.
Unfortunately for them, $HYPE defied bearish expectations and kept rising. With pressure mounting and margin depleting, the whale had no choice but to close the short at a staggering 77% loss. Now, only $6.98 million remains in the wallet that once held much more.
What Drove HYPE’s Unexpected Rise?
HYPE’s price rally came as a surprise to many traders who had expected a market cooldown. Instead, bullish momentum pushed the token steadily upward. Whether due to strong community support, platform developments, or speculative fervor, HYPE defied gravity while shorts were squeezed out.
This event highlights how unpredictable meme or hype-driven tokens can be. Even experienced traders can find themselves on the wrong side of a trend—especially when using leverage.
Lessons for Traders
The whale’s loss serves as a cautionary tale. Leveraged positions, especially in volatile tokens like HYPE, carry immense risk. While they can amplify gains, they can just as easily accelerate losses.
For other traders, this should be a reminder to maintain strong risk management strategies. No matter the size of your account or your confidence in a trade, the market can always go the other way.
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