The Public Whale Hunt on Hyperliquid

On-chain analytics reveal a coordinated public effort to squeeze a massive short position on the Hyperliquid derivatives exchange. The trader known as "Loracle" has been accumulating a substantial PONS perpetual contract short since September 3rd, now facing nearly $3 million in unrealized losses.

Position Details and Exposure

Key metrics of the position include:

  • Position Size: 25,040,000 PONS
  • Notional Value: ~$19.41 million (at entry)
  • Entry Price: $0.6553
  • Leverage: 3x
  • Platform Dominance: 19% of total PONS open interest on Hyperliquid

Despite the mounting paper losses, the trader continues to add to the short position, indicating a strong conviction in their market view.

Open Coordination and Market Response

On September 6th, analyst @mlmabc publicly solicited funds on social media to target this short. The post claimed "eight-figure capital commitments" were already secured, aiming to orchestrate a coordinated buying pressure to force a short squeeze or liquidation.

This open organization of market forces against a specific trader has sparked debate within DeFi circles. Proponents frame it as market freedom, while critics raise concerns about potential market manipulation.

Liquidation Threshold and Countermeasures

Data indicates the short position's liquidation price is approximately $1.83. This requires PONS to rally roughly 128% from current levels to trigger a forced closure, leaving significant room for the battle to play out.

In response to the pressure, the trader attempted an unconventional move: deploying a zero-fee forked token also named "Pons." This is seen as an effort to potentially alter the market dynamics or liquidity of the original PONS token. The effectiveness of this strategy remains uncertain.

Historical Precedent and Industry Implications

Such "whale hunting" is not new to Hyperliquid. A similar coordinated attack against a 50x leveraged Bitcoin short occurred in March 2025, resulting in liquidation and drawing attention to the risks of high leverage and liquidity depth on derivatives platforms.

The current situation underscores the unique vulnerabilities of large positions in DeFi:

  • Position Transparency: On-chain data exposes large holders, making them targets.
  • Community Mobilization: Social media enables rapid capital coordination for targeted attacks.
  • Liquidity Risk: Exiting large positions on low-liquidity tokens is exceptionally difficult.

This ongoing showdown is more than a battle over millions; it serves as a real-time case study on market博弈, risk management, and the power of decentralized communities in DeFi. The outcome will likely influence future trading strategies and market behavior.