Why Is Hyperliquid (HYPE) Price Exploding? Here’s How One Trader Lost $23M Betting Against It
Almost always when you look at the top gainers in crypto this week, you will find Hyperliquid’s HYPE token at the top of the list.
In just a matter of days, HYPE has gone from trading around $26 to nearly $36, before pulling back slightly to its current price of $34.95. The chart shows a clean, parabolic breakout – one of those rare moments where price action and fundamental momentum align perfectly. But what’s behind the pump, and why are traders suddenly paying so much attention to this token?
What you'll learn 👉
On-Chain Growth Driving the HYPE
Hyperliquid’s official X account gave us a clear hint. According to their recent post, the platform has hit multiple all-time highs across key metrics:
- Open interest: $8.9 billion
- 24-hour fees generated: $5.4 million
- USDC total value locked (TVL): $3.2 billion
These numbers are no joke. Open interest this high signals a surge in trader activity. The fees show growing usage. And the TVL means that capital is flowing into the platform at scale. All of this builds trust and excitement around the protocol – especially among DeFi-native users looking for fast, transparent, and scalable infrastructure.
Hyperliquid hit multiple all-time highs today, including:
— Hyperliquid (@HyperliquidX) May 22, 2025
+ Open interest: $8.9B
+ 24h fees: $5.4M
+ USDC TVL: $3.2B
Onchain, transparent markets are the future. pic.twitter.com/DBUWZZEkgk
In other words, Hyperliquid is not just pumping on hype – it’s pumping on data.
The Whale Who Bet Wrong
But the story doesn’t end with metrics. What really poured gas on the fire was a now-infamous whale who tried to short the rally – and lost big.
According to on-chain analytics platform SpotOnChain, a trader opened a massive short position of 1.875 million HYPE tokens, worth roughly $57.14 million, using 5x leverage. Over 23 days, this whale kept adding collateral, depositing $30.5 million in USDC to keep the position alive.
But as HYPE continued to climb, the position turned sour fast.
Eventually, the trader was forced to close out, locking in a brutal $23.52 million loss – a 77% wipeout. Today, only $6.98 million remains in their account. It was one of the most talked-about short squeezes on-chain this month.
A massive $23.5M loss for the whale who bet against $HYPE … 😥
— Spot On Chain (@spotonchain) May 23, 2025
The whale who shorted 1.875M $HYPE ($57.14M) with 5x leverage has finally closed their position, taking a $23.52M loss (-77%)!
Over the past 23 days, the whale deposited $30.5M $USDC into #Hyperliquid to maintain… https://t.co/GjDcDGUKVx pic.twitter.com/CpKxRo2myK
These kinds of liquidations can actually push prices even higher. When big shorts close under pressure, they often do so by buying back into the market, triggering more demand and upward movement.
| HYPE Price 💰 | 1W 🕒 | 1M 📆 | YTD 📊 | From ATH 🏔️ | From 52W Low 📉 |
|---|---|---|---|---|---|
| $35.25 | +4.21% 🟢 | +42.87% 🟢 | +16.27% 🟢 | -9.09% 🔻 | +277.9% 🟢 |
What’s Next for the HYPE Price?
From a technical perspective, HYPE looks extremely strong – but also very overbought. On the 4-hour chart, the RSI is sitting above 80, which often signals a pullback or period of consolidation is near. Still, momentum remains on the bulls’ side, and dips could become buying opportunities if the platform continues to grow.
This latest run proves something else, too: on-chain DeFi products with real usage can still move markets. In a time when many tokens are stagnant or fading, HYPE is showing what happens when metrics, community, and timing all align.
And for the whale who bet against it? It’s a painful reminder that in crypto, going short in the face of real growth can cost you everything.
Read also: XRP Army Finds the Clue: Ripple Just Got Closer to the Core of U.S. Capital Flows
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