Loracle has been continuously reducing HYPE short positions for 9 hours, with $59 million in spot holdings remaining untouched.

BlockBeats news, on May 31, according to Hyperinsight monitoring, HYPE's largest short seller, "Trader Loracle," has been reducing their short position for 9 hours, with each reduction ranging from $400,000 to $1.4 million. The short position is massive; so far, $7 million has been reduced, but the remaining short position is still valued at $108 million, with an unrealized loss of $34.6 million. Of the $27 million margin in the account, around $23 million is being used to maintain this position.

In addition, 893,000 unstaked HYPE tokens were further transferred today to the trader's HyperEVM address, valued at approximately $59 million. There have been no further actions on the spot position so far.

In the past month, this whale has unlocked a total of 1,115,000 HYPE tokens in two events, worth about $63.51 million. According to clearly traceable on-chain records, 557,000 HYPE tokens, valued at roughly $33.35 million, were sold on May 21. The market widely expects that Loracle may sell the newly unlocked 893,000 HYPE tokens on the spot market. In addition, this sale could coincide with a further reduction of short positions; if the short does not unwind synchronously with the spot sale, the $104 million HYPE short exposure will become a one-sided naked short. If a short squeeze and liquidation occur, potential losses could exceed $100 million, enough to wipe out all spot gains.