HYPE hits $73.7 ATH as ETFs, buybacks fuel short squeeze

Published: 2026-06-01 12:30:56 |

Hyperliquid’s HYPE surged to about $73.7 on June 1, a new all-time high, extending gains of over 70% in a month. Traders link the breakout to fresh spot ETF inflows, Hyperliquid’s buyback mechanism, and growing leveraged short pressure. On the policy side, the US CFTC approved a federally regulated Bitcoin perpetual futures route via Kalshi, which is viewed as validation for the perpetual derivatives market—adding to the positive read-through for HYPE. Hyperliquid also expanded beyond perps with native prediction markets tied to fully collateralized real-world event contracts. Fundamental demand for HYPE in the article centers on fee-to-buyback design: roughly 98% of trading fees are routed into an Assistance Fund that buys HYPE on the open market. The report also estimates about 14% of circulating supply has been removed from active markets. Positioning added fuel, with whale trader “Loracle” cutting a large HYPE short after losses topped $30m, intensifying short-squeeze dynamics. Technically, HYPE trades well above the 50-day and 200-day moving averages. Upside targets cited include $97 and $163, but liquidation heatmaps show dense short liquidity around $75–$77. A sustained break below $70 raises the risk of a pullback toward $64–$60. For traders, the key is whether HYPE can clear the $75–$77 pocket while open interest and buying pressure remain elevated.

Bullish

HYPE’s rally appears to be supported by multiple reinforcing demand channels: spot ETF narratives, a fee-to-buyback structure that mechanically increases spot buying of HYPE, and positioning-driven short-squeeze dynamics as major shorts get trimmed. The CFTC/Kalshi approval for regulated Bitcoin perps adds market legitimacy for the derivatives theme, likely sustaining risk-on flows into high-liquidity perps platforms. Short-term, momentum and liquidations around $75–$77 can amplify volatility, but the overall tape remains constructive as long as HYPE holds above $70 and open interest/buying pressure keep rising. Long-term, if ETF adoption and buyback intensity persist, supply reduction (the article’s ~14% estimate) can support a higher valuation floor. The main near-term risk is that ETF timelines or inflows disappoint, or that the crowded short-liquidity band forces repeated rejections—potentially triggering a retracement toward $64–$60.