Hyperliquid Bear Loses $60M As HYPE Price Pops 25% In A Day

Published: Aug 20, 2026, 09:00 GMT+00:00

Key Points

• Trader Loracle has accumulated approximately $61.3 million in losses from trading HYPE.
• The HYPE token surged about 25% due to optimism surrounding Hyperliquid's potential expansion into the US.
• A daily bull flag breakout suggests a target price of $100, although an RSI above 74 indicates possible near-term overheating.

Overview

Hyperliquid (HYPE) has recently seen significant price movement, punishing one of its most persistent short sellers, a trader known as 'loracle.hl'. This trader has incurred over $60 million in cumulative losses from multiple trades involving HYPE, which has been characterized by volatility and rapid price changes.

Loracle's Trading History

Loracle's trading strategy has involved flipping between short and long positions on HYPE. In June, he closed a short position worth over $110 million, realizing a loss of $46.46 million as the token rallied sharply. Following this, he attempted a long position, which resulted in an additional loss of $2.33 million. As of August 20, he holds a 3x leveraged short position of approximately 685,740 HYPE, valued at about $49.36 million, with an average entry price near $53.72. Currently, this position is showing unrealized losses of around $12.52 million.

Market Reaction and Price Surge

HYPE's price has surged significantly, climbing as much as 24.5% since August 19, reaching around $72 from an intraday low of approximately $58. This price increase was fueled by comments from US President Donald Trump, who indicated that CFTC Chair Michael Selig is working towards bringing Hyperliquid into the US market in a compliant manner. This potential regulatory approval could greatly expand Hyperliquid's user base and increase its fee generation capabilities.

Technical Analysis

From a technical perspective, HYPE has entered a breakout phase of a bull flag pattern on the daily chart, having surged above the upper trendline of the pattern near $65–$66. This breakout was accompanied by a notable increase in trading volume, reinforcing the bullish outlook. HYPE is currently trading above its 20-day and 50-day exponential moving averages (EMAs), which are positioned at approximately $59.4, while the 200-day EMA is around $51.9. The measured move target from the bull flag pattern suggests a potential price of $100, indicating a further upside of about 35% from current levels. However, the daily Relative Strength Index (RSI) has risen above 74, signaling overbought conditions and the possibility of a short-term pullback before any further upward movement.

Conclusion

The recent developments surrounding Hyperliquid and the HYPE token highlight the volatility and potential for significant gains in the cryptocurrency market. Traders like Loracle illustrate the risks involved in short selling during bullish trends, while the broader market sentiment remains optimistic about regulatory advancements that could benefit platforms like Hyperliquid.