HYPE Hits New ATH Above $74 as Hyperliquid Shorts Get Squeezed
HYPE surged to a new ATH above $74 on 1 June on Hyperliquid, extending prior week highs (CoinGecko cited an ATH near $73.64). The move triggered a clear derivatives squeeze in Hyperliquid perps: tracked short Loracle trimmed more than half of his HYPE short but still held 843,232 HYPE short, with unrealized losses above $22m.
On the other side, whale 0x082e flipped from a 5x HYPE long (opened Dec 2025) into a large winner, with unrealized gains reported at more than $46m after surviving a drawdown of over $25m. The article frames the rally as more than spot demand, emphasizing real-time repricing of liquidation zones and margin pressure in Hyperliquid’s visible perp market structure.
For traders, HYPE near the new high zone can mean faster short-covering and abrupt volatility if remaining shorts must add margin or get pushed into liquidation.
Bullish
This is bullish for HYPE in the short term because the new ATH on Hyperliquid coincides with a visible short squeeze: key shorts still carry large exposure, making upside momentum easier to sustain via liquidation-driven covering. However, the same dynamics also raise the risk of sudden, violent volatility—so traders may see strong continuation but with sharper intraday swings as remaining shorts decide how much margin to burn. Long term, continued demand signals (spot ETF inflows and whale accumulation mentioned in the earlier report) support the narrative, but near-term outcomes depend heavily on whether the residual short unwind completes without triggering further cascading liquidations.