Hyperliquid News Today: Crypto Whale's $20M Short Bets Against HYPE's Resilience Amid $8B Trading Volumes

A crypto whale has deployed $4 million in USDC to open a $20.15 million 10x leveraged short position on Hyperliquid's native token $HYPE, signaling a bearish bet on the asset's near-term trajectory. The move, executed via the Hyperliquid platform, underscores growing skepticism about HYPE's price resilience amid broader market volatility and internal governance debates. The whale's position, split into smaller trades to avoid slippage, carries significant risk: a 5% drop in HYPE's price would yield $10 million in unrealized gains, while a reversal could trigger rapid liquidation according to the report.

Hyperliquid's token has faced mounting pressure in recent weeks. After testing the $38 support zone, HYPE retreated to $31–$32, consolidating within a descending trendline that traders watch for potential rebounds as data shows. Analysts note that reclaiming the $38 resistance level is critical for a structural shift, as the token remains below key technical markers. Meanwhile, the platform itself has maintained robust trading volumes, with HyperliquidX recording $8 billion in daily perpetuals volume and over $6.5 billion in open interest, outpacing competitors like Lighter and Aster.

On-chain data reveals mixed sentiment among large holders. An AAVE whale increased its holdings by 24,000 tokens worth $4 million, signaling long-term confidence despite the 10/11 flash crash that liquidated part of its position. Conversely, ETH whale "Brother Ma" reduced his long position by 25x, incurring $1.39 million in weekly losses and $18.56 million in total account losses, reflecting heightened caution. These contrasting behaviors highlight the fragmented risk appetite in crypto markets.

The whale activity reflects broader market dynamics. Hyperliquid's team recently unlocked $314 million in tokens, sparking debates about transparency and sell-pressure risks. Arthur Hayes, a vocal critic, highlighted the need for clearer communication on token allocations, while others defended the team's right to retain earnings. This tension coincides with a broader slump in altcoins, though perpetual DEXs like Hyperliquid have seen consistent trading volumes, averaging $28–$60 billion daily in November.

Technical analysts remain cautiously optimistic. HYPE's price action suggests an ascending triangle pattern, with buyers defending the $33–$34 zone and testing the $35–$36 resistance cluster. A successful breakout could target $38–$41, but failure to clear these levels may extend consolidation or trigger a retest of $29–$28 support as analysts predict. Glassnode data further indicates that Hyperliquid whales hold only modest net-short positions, suggesting limited conviction in a severe price decline according to market analysis.

The ecosystem's fundamentals, however, remain strong. Hyperliquid Daily emphasized the platform's leadership in perpetuals DEX usage, citing record volumes and open interest as bullish indicators. Yet, the whale's $20 million short bet-coupled with internal governance tensions-raises questions about HYPE's ability to withstand coordinated bearish pressure.

As the crypto market navigates regulatory uncertainty and shifting investor sentiment, Hyperliquid's token faces a critical juncture. Whether HYPE can stabilize above $35 or succumb to further sell-offs will depend on both technical execution and broader market confidence in the platform's long-term vision.