Hyperliquid nears its high as short squeeze wipes out $36.5 million

Hyperliquid’s HYPE token surged to $59.06, leaving it less than $1 below its all-time high for 2025. As the rally accelerated, traders positioned for a pullback were forced to cover, and $36.5 million in short positions were liquidated. Over the week, HYPE climbed nearly 50%, significantly outpacing the broader crypto market.

The move took on the characteristics of a classic short squeeze. As HYPE pressed toward its prior high, forced closures added further buying pressure, which in turn drove the token higher and increased stress on remaining short positions. At its peak, the token’s market capitalization briefly topped $14 billion, placing it among the larger digital assets by value.

The episode stands out less as a story of steady spot demand than of market mechanics. Crowded bearish positioning turned leverage into price action, and once the first wave of liquidations began, the rally became self-reinforcing. The scale of the unwind offered a clear indication of how one-sided the short trade had become.