loracle.hl, a prominent crypto trader, closed a $110 million short position in #HYPE tokens, crystallizing a $46.46 million futures loss after an extended margin squeeze. The trader then pivoted to the long side, opening a 2x leveraged position on 82,195 HYPE tokens valued at approximately $5.73 million, according to on-chain monitoring by LonC.
The reversal follows a devastating 18-day decline that erased loracle.hl's entire $42.2 million profit accumulated over nearly 10 months of previous futures trading, plus an additional $5.19 million loss. Prior to closing the full position, the trader held 843,232 HYPE tokens short, representing $61.4 million in notional exposure, signaling mounting pressure from price appreciation.
The liquidation highlights the acute risks of directional bets on lower-liquidity tokens, where concentrated short positions face amplified vulnerability to momentum-driven rallies. loracle.hl's decision to enter a leveraged long position immediately after closing suggests conviction in HYPE's continued upside, though the position size remains significantly smaller than the prior short exposure, indicating reduced confidence or risk management discipline.