BlockBeats News, May 30, according to Hyperinsight monitoring, the largest short seller of HYPE, known as "Trader Loracle," successfully unlocked 893,000 HYPE tokens early yesterday, which were further transferred to the HyperEVM address today, totaling approximately $59 million. The spot position is currently inactive. It is worth noting that Loracle's short position reduction started 2 hours ago, with a gradual reduction of about $500,000 in each step, totaling approximately $3 million so far. Despite the reduction, the massive short position still stands at a value of $114 million, with an unrealized loss of $35.5 million. Out of Loracle's $27 million margin, around $23 million is being used to maintain this position.

Earlier last month, this whale had unlocked a total of 1.115 million HYPE tokens twice, amounting to around $63.51 million. In a publicly traceable on-chain record, on May 21, this whale sold 557,000 HYPE tokens, worth approximately $33.35 million. The market currently anticipates Loracle to potentially sell the newly unlocked 893,000 spot tokens. Moreover, this sell-off might coincide with the short position reduction. If the spot tokens are sold without synchronous stop-loss with the short position, the $104 million HYPE short exposure will turn into a naked short exposure. If a short squeeze occurs, the potential loss could exceed a billion dollars, enough to wipe out all spot gains.

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