Hyperliquid Wipes out $36.5M Shorts as HYPE Climbs Within Cents of ATH

HYPE Approaches Record Highs

Hyperliquid (HYPE) neared its all-time high Thursday morning as the token surpassed the $59 threshold for the first time in 2026. Market data shows that HYPE surged to $59.06, its highest mark so far this year and a few cents shy of its Sept. 18, 2025, record high of $59.33.

The price action drove HYPE’s daily gains to approximately 20%, making it one of only two high-capitalization altcoins to post double-digit gains within a 24-hour period; the privacy coin zcash was the other. Meanwhile, HYPE’s latest rally pushed its weekly gains close to 50% and briefly lifted its market capitalization above $14 billion, toppling WBT as the 11th-ranked cryptocurrency. The surge triggered the liquidation of $36.5 million in short bets, compared to approximately $1.4 million in wiped-out long positions.

Despite later retreating to just under $59, HYPE’s multi-week upward momentum appears to validate Hyperliquid’s strategic shift to establish USDC as its official aligned quote asset and Coinbase as its treasury deployer. As recently reported by Bitcoin.com News, Coinbase stepped in under a new framework called AQAv2, placing the exchange at the center of USDC reserve management on the platform, while Circle handles the technical logistics via its Cross-Chain Transfer Protocol.

Market analysts note that this architecture links Hyperliquid’s revenue to user deposits rather than volatile trading volumes, insulating token buybacks during broader market downturns. Near-term yield-sharing revenue is projected to hit between $135 million and $160 million, with a potential upside of $300 million to $500 million if asset balances expand.

Beyond the Coinbase integration, demand for HYPE has been catalyzed by the May 15 launch of spot exchange-traded funds (ETFs) by 21Shares and Bitwise. The successful ETF debuts have helped the asset brush off recent reports that legacy venues CME and ICE are lobbying regulators to crack down on Hyperliquid.

However, despite the growing enthusiasm, some critics warn that the asset may be entering a bubble phase. Social media commentator Richard Dang suggested that institutional interest from traditional finance might signal a market top.

“When Wall Street starts mentioning a coin, that’s often the moment when gradually exiting has never been a bad indicator,” Dang warned. “The queue waiting to unstake hyperliquid: native is showing signs of increasing lately, with tens of millions of dollars waiting to be released.”

Dang also pointed to the upcoming unlock of 2.54% of the total supply allocated to the Hyperliquid development team as another potential headwind.