Key Points:
- Hyperliquid’s native token HYPE surged 13% on May 26, reaching $39.9
- Currently trading at $38.59, up 11% over 24 hours
- Whale trader closed $1 billion worth of Bitcoin short positions with 40x leverage
- Prominent trader James Wynn recently closed a $1.25 billion BTC long position
- Hyperliquid’s X (Twitter) account was compromised on Saturday, but blockchain remains unaffected
HYPE Token Experiences Sharp Price Increase
The native token of decentralized derivatives exchange Hyperliquid has experienced a significant price surge, jumping 13% on May 26 and reaching a high of $39.9. As of press time, HYPE is trading at $38.59, maintaining an impressive 11% increase over the past 24 hours according to data from Coinmarketcap.
This bullish momentum comes as whale activity on the platform has intensified, drawing increased attention to the protocol and its native token.
Whale Trading Activity Drives Market Interest
The price action follows reports of a large trader closing $1 billion worth of Bitcoin short positions built with 40x leverage on the platform. According to data from LookOnChain, this resulted in a $15.87 million loss for the trader in just 15 hours.
Market attention has been particularly focused on prominent crypto trader James Wynn, who last week closed a massive $1.25 billion notional long position on Bitcoin using 40x leverage on the onchain decentralized exchange.
Wynn has since reversed his market stance, switching from long to short on Bitcoin. On Sunday, he opened a new BTC short position of 1,038.7 BTC (valued at approximately $111.8 million) at an entry price of $107,711.1, with a liquidation price set at $149,100.
Trader Performance and Market Sentiment
LookOnChain data published Monday revealed that James Wynn withdrew 28 million USDC from Hyperliquid, securing a substantial $25.2 million profit. The trader has been highly active on the platform, making 38 trades over the past 75 days. Of these trades, 17 were profitable, giving him a 45% win rate.
Market sentiment around HYPE remains mixed. While some traders are betting that early regulatory engagement could further legitimize the token’s uptrend, others express caution. One trader noted on X (formerly Twitter) that “growth has reached the ceiling,” adding that there are strong competitors in the space.
The same trader suggested that despite support from “giants and extraordinary people,” HYPE might represent “the best short-selling target with large capacity, good liquidity and clearest logic.”
Security Incident: X Account Breach
In a separate development, Hyperliquid reported on Saturday that its official X account had been compromised. The protocol quickly issued a statement confirming that “The Hyperliquid blockchain is unaffected” and warned users: “Do not interact with any links or tweets from that account.”
In a follow-up update on Monday, the Hyperliquid team shared results of their “thorough investigation” conducted with assistance from X’s security team. They confirmed there was “no compromise of internal systems, email, or associated credentials” and that “Hardware 2FA was untouched.”
Security Reminder for Crypto Users
The Hyperliquid community has used this incident to remind users of all blockchain projects to remain vigilant regarding communications from social media accounts. Their guidance emphasized the importance of verifying news shared on any platform, stating: “If an announcement looks suspicious, do not interact.”
This security incident comes at a time of increased trading activity and price appreciation for the protocol’s token, highlighting the ongoing security challenges faced by even established projects in the cryptocurrency space.