The native token for Hyperliquid, HYPE, has dropped 22 percent from its peak. A single address, 0xf02d, controls the largest active short on the asset—715,334 HYPE tokens valued at $54.57 million.
According to on-chain data, the position has generated $5.56 million in unrealized profit. The short holder has also accumulated $620,000 in funding fees, signaling a sustained period where HYPE perpetual futures contracts have traded with negative funding rates on Hyperliquid.
Negative funding rates mean short position holders receive payments from longs to equilibrate the perpetual contract price with the underlying spot market. During periods of sustained downward pressure, large shorts accrue additional yield from these flows.
Hyperliquid operates as a purpose-built Layer 1 blockchain for on-chain perpetual futures trading. HYPE launched via airdrop in November 2024 and runs on the platform's BFT consensus mechanism.
