HYPE Surges 13% After $1.25 Billion Trade on Hyperliquid

Hyperliquid's native token, HYPE, has seen a remarkable surge, rising 13% on May 26 to reach an all-time high of $39.9. This surge followed a significant event where a prominent crypto trader, James Wynn, closed a massive $1.25 billion notional long position on Bitcoin using 40x leverage on the decentralized exchange (DEX) Hyperliquid. This move resulted in a $15.87 million loss in just 15 hours, as reported by LookOnChain data. The token's price has since stabilized at $38.59, marking an impressive 11% increase over the past 24 hours.

HYPE has been on a tear, pulling in capital from various sources. With a 110% month-over-month ROI, this move isn't just explosive; it's strategic. Sui [SUI] has become the latest casualty, losing its 11th spot in market cap to HYPE, with the latter adding a staggering $6.86 billion in valuation over the past month alone. For perspective, that’s roughly equivalent to PEPE’s entire market cap.

Now, HYPE may be tapping into a major supply wall. Opportunistic shorts are loading up, eyeing a reversal. Hence, the question – Will the short pressure cool things down or could it instead spark the next explosive leg up? Coinglass data (4H) revealed that 60.7% of accounts across exchanges have been betting bearish. In other words, shorts may be circling. That fits right into AMBCrypto’s take. With HYPE just 4.44% from a fresh all-time high, traders are jumping in, smelling a classic reversal setup. Technically speaking, this move might feel like textbook timing.

And, the warning signs are flashing too. At the time of writing, HYPE’s RSI was hovering at 85, screaming “overbought.” All while the price already slipped 2.58% intraday, tapping a low of $37.53. Now, that’s the kind of heat that invites short interest, and maybe even sparks some profit-taking. Case in point? A once-dormant whale just made a power move. According to Lookonchain, the wallet scooped up 1.45 million HYPE between 7 December 2024 and 9 January 2025, at an average cost basis of $18.39 – Totaling a $26.58 million capital outlay.

Fast forward to this week – The whale offloaded 395k HYPE at $36.69, generating $14.51 million in returns. However, that’s just the start. Notably, 1.05 million HYPE is still on deck, valued at $40.5 million. Unlike previous short attempts, this wave of short positioning aligns with real whale distribution. In turn, making it feel less speculative and more tactical. If that trend holds, the bears might actually be playing it smart this time.

In a bull market, every liquidity event becomes someone else’s entry point. Right now, it looks like HYPE bulls may be playing by that rulebook with conviction. Right after one whale’s multi-million dollar exit triggered jitters of a possible top, the tables flipped fast. In fact, Lookonchain data flagged three new deep-pocketed players jumping in, scooping up 137,921 HYPE tokens worth a combined $5.33 million. Their average buy-in? A confident $38.50. Sure, short-term volatility might kick in as smart money locks in gains. However, the FOMO is still very much alive – and that’s HYPE’s biggest edge.

The shorts might think the coast is clear, but with heavy accumulation stacking near resistance, any short squeeze could ignite a powerful breakout. In other words, a new all-time high might be within reach. The attention on Hyperliquid has intensified as whales like Wynn place billion-dollar positions on the platform. Traders are betting that early regulatory engagement could further legitimize HYPE’s uptrend. However, some traders have expressed concerns about the token's growth potential, citing strong competitors and the upcoming release of additional tokens and team unlocks. One trader noted that the current growth may have reached its ceiling, and the token's price-to-earnings ratio could be a concern.

Hyperliquid reported that its official X account, HyperFND, was compromised on Saturday. The protocol quickly assured users that the Hyperliquid blockchain was unaffected and advised against interacting with any links or tweets from the compromised account. A thorough investigation conducted with the assistance of X’s security team revealed that there was no compromise of internal systems, email, or associated credentials. The community was reminded to stay vigilant and verify the authenticity of any news shared on social media accounts.

James Wynn, the prominent crypto trader, made 38 trades on Hyperliquid in the past 75 days, with 17 of those trades being profitable, resulting in a 45% win rate. He recently withdrew 28M USDC from Hyperliquid, making a $25.2M profit. This activity highlights the significant interest and potential for large-scale trading on the Hyperliquid platform. The surge in HYPE's price and the intense trading activity on Hyperliquid underscore the growing interest in decentralized finance (DeFi) and the potential for significant market movements. As regulatory engagement and early adoption continue to shape the DeFi landscape, tokens like HYPE could see further growth and legitimacy. However, traders and investors must remain cautious, considering the potential risks and the competitive nature of the market.