#Hyperliquid #HyperliquidWhale #BullishNews #Whale.Alert $140M Short Whale vs Momentum HYPE: Liquidation War Rages on Hyperliquid
The largest public short tracked on Hyperliquid is bleeding out. Trader "Loracle", an early ecosystem contributor and founder of Hypurrfun, is holding a 5x leveraged short on HYPE worth ~$103M+ notional, with unrealized losses of $30โ32M as HYPE continues to hit new ATHs above $64. The whale on the opposite side, 0x082e, is up +$33M+ from their long position. This is an ongoing liquidation war on-chain โ and the outcome will reshape the next 30% of HYPE's price movement.
Whale Entry & Liquidation Zone
Loracle flipped from the second-largest LONG position in HYPE to SHORT around April 20. Key parameters:
โข Average entry price: ~$40.87 (initially), then added margin at higher prices
โข Position: ~1.8 million HYPE, $103โ113M notional | Leverage: 5x
โข Initial liquidation price: ~$69.64 โ after margin add: pushed to ~$83โ89
โข Unrealized losses: ~$30โ32M (May 25)
Defense strategy: deposit & sell 616Kโ626K HYPE (~$36โ37M) plus release staking aHYPE to boost margin. Every buy injection buys time but sacrifices collateral โ this whale is eating into its reserves to survive.
Real Enemy of the Whale: Protocol Buyback
Loracle isn't against traders, they're up against the Relief Fund. 99% of Hyperliquid's trading fees are used to buy HYPE on the open market, every block, every condition. Non-discretionary. Unstoppable.
Cumulative revenue: >$1.16 Billion โ nearly all converted to HYPE purchases. Q3 Buyback $316.76M โ Q4 $255.05M โ Q1 2026 $192.25M (down 39.4% over two quarters during ATH prices โ filling the secondary demand gap).
Three HYPE buy engines running simultaneously:
1๏ธโฃ Relief Fund โ 99% fees โ HYPE every block 2๏ธโฃ PURR (Nasdaq-listed treasury) โ ~20M HYPE, quarterly profit $152.5M
3๏ธโฃ USDC reserve yield โ 90% interest โ buyback