BlockBeats News, May 31. According to Hyperinsight monitoring, the largest short seller of HYPE, known as "Trader Loracle," has been reducing their short position for the past 9 hours, with each reduction ranging from $400,000 to $1.4 million. With a massive initial short position, they have so far reduced $7 million, but the remaining short position is still valued at $108 million, with an unrealized loss of $34.6 million. Approximately $27 million of their $27 million margin has been used to support this position.

In addition, 893,000 HYPE tokens redeemed by them have been further transferred to their HyperEVM address today, worth around $59 million. Currently, there have been no further actions regarding their spot position.

Previously, this whale had unlocked a total of 2 times in the past month, totaling 1.115 million HYPE tokens, worth about $63.51 million. In a trackable on-chain record, on May 21, they sold 557,000 HYPE tokens, valued at approximately $33.35 million. The market currently generally expects Loracle to sell the newly unlocked 893,000 spot tokens. Additionally, this sale may potentially coincide with the short position reduction. If spot tokens are sold without simultaneous stop-loss in the short position, their $104 million HYPE short exposure will turn into a unilateral naked short exposure. If squeezed and liquidated, the potential loss may exceed $100 million, enough to wipe out all their spot gains.