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Hyperliquid News Today: Abraxas Capital's $760M Short Position Points to an Uncertain Path Ahead for HYPE

Hyperliquid News Today: Abraxas Capital's $760M Short Position Points to an Uncertain Path Ahead for HYPE

Bitget-RWA2025/11/03 19:38
By: Bitget-RWA
- Hyperliquid's HYPE token faces potential 50% price drop due to bearish indicators like growing short positions and competition. - Abraxas Capital's $760M short positions on BTC/ETH and individual traders' aggressive shorting amplify downward pressure risks. - Pump.fun's $1.42M 24-hour revenue surge threatens Hyperliquid's dominance in DeFi derivatives market. - $1B fundraise raises valuation concerns as critics question HYPE's $305M reserves vs 12.6M circulating tokens. - Forrester's AI investment foreca

The cryptocurrency community is rife with talk about a possible 50% drop in the value of Hyperliquid's HYPE token, as a series of negative signals converge. Although the platform recently marked a

to strengthen its decentralized derivatives network, market watchers and traders are raising concerns about an uptick in short selling, evolving market conditions, and intensifying competition.

Hyperliquid News Today: Abraxas Capital's $760M Short Position Points to an Uncertain Path Ahead for HYPE image 0

One of the main drivers behind the bearish outlook is the surge in short positions taken by institutional investors. On-chain analytics from HyperInsight indicate that two wallets associated with

have accumulated a total of $760 million in short bets on Hyperliquid, with unrealized profits surpassing $50 million. These wallets have notably ramped up their short exposure to (BTC) and (ETH) over the last week, with shorts alone climbing from $124 million to $280 million. While most of these positions are in the green, one short at 0x5b5 has dropped 54%, pointing to possible turbulence ahead.

Retail traders are also taking bearish stances. A notable on-chain trader,

, has seen their BTC and SOL short trades rebound to a 108% ROI, placing them sixth on Hyperliquid’s SOL contract leaderboard. This trader’s approach—scaling back parts of their $7.6 million BTC and $5.9 million SOL shorts—mirrors a broader move toward reducing risk as volatility picks up. Experts warn that such concentrated shorting could intensify downward momentum for HYPE, especially if leveraged trades spark a wave of liquidations.

Adding to the worries is the ascent of rival platforms. Defillama data shows that

soared to $1.42 million in the past day, overtaking Hyperliquid’s $1.18 million. This shift in user engagement underscores the mounting competition in decentralized finance (DeFi), with pump.fun leveraging speculative activity and social media-fueled liquidity. For Hyperliquid, which depends on institutional trust and substantial trading activity, ceding ground to up-and-coming platforms could weaken its position in the derivatives market.

Even with these challenges, Hyperliquid’s recent $1 billion capital injection is being promoted as a positive sign. The funds are aimed at boosting token reserves and enhancing liquidity, with supporters pointing to the platform’s $317 billion monthly trading volume as evidence of strong demand. However, skeptics argue that this influx of money may have pushed HYPE’s price above its true worth. With $305 million in reserves and 12.6 million tokens in circulation, the token’s real value remains debated, especially as short-term speculation dominates the market mood.

Broader market forces also reinforce the bearish perspective.

suggest that 25% of planned AI investments by businesses will be postponed due to unmet expectations, a trend that could have ripple effects across the crypto industry. While Hyperliquid isn’t directly linked to AI, a wider pullback in risk-taking and capital deployment could cool interest in speculative tokens like HYPE.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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Bitget-RWA2025/11/05 12:14

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