On-chain analysts identified a cluster of 55 wallets that began shorting Hype from 22 November, exerting downward pressure ahead of expected token unlocks.

On-chain findings

Data show the cluster opened and expanded short positions from 22 November, coordinating selling pressure that coincided with market expectations about upcoming token releases and circulatory increases.

Market reversal and liquidation

When the Hyperliquid community organised a targeted response and trading sentiment shifted, the concentrated short lost footing and was forcibly closed by market mechanisms.

The liquidation removed a $67 mln short exposure, according to on-chain observers, and coincided with a rapid price rebound for Hype.

Implications for token dynamics

Analysts note that coordinated short clusters can amplify moves around expected unlock events, while community-driven counteractions may trigger concentrated liquidations and swift price recoveries.