The cryptocurrency perpetual futures market underwent a dramatic $80 million shakeout over 24 hours, exposing a stark divide in positioning across major assets. Bitcoin and Ethereum traders, heavily skewed to the long side, were punished by a sudden downturn, while Hyperliquid’s HYPE token surged as a massive short squeeze and fresh ETF inflows clashed with bearish bets.
Liquidation Breakdown: Longs Punished in BTC and ETH
Bitcoin (BTC) perpetual futures saw roughly $26.91 million in liquidations, with long positions representing 75.44% of that total. Ethereum (ETH) fared even worse, logging $32.55 million in liquidations and a 67.72% long-dominated wipeout. The concentrated liquidation of bullish positions suggests that widespread optimism was met with a swift market correction, catching overleveraged traders off guard.
HYPE Short Squeeze: Bears Crushed
In a mirror opposite, Hyperliquid’s HYPE token recorded $20.78 million in liquidations — and an overwhelming 90.13% came from short positions. This pronounced short squeeze forced bearish traders to cover at rapidly climbing prices, creating an amplifying feedback loop that drove HYPE sharply higher. The token’s price advanced from the $62 range to above $65, approaching the $67 resistance zone within hours.
Institutional Demand Fuels HYPE’s Resilience
Adding fuel to the rally, U.S. spot HYPE exchange-traded funds (ETFs) surpassed $100 million in cumulative inflows across their first 11 trading sessions (May 12–28). The funds experienced zero outflow days, with the largest single-day inflow hitting $25.46 million on May 20. This consistent institutional demand provided a sturdy floor, coinciding with a 35% surge in daily trading volume to $1.37 billion and reinforcing the token’s bullish ascending channel structure.
The bifurcated market serves as a stark reminder that leverage can swiftly reverse fortunes, and that asset-specific dynamics — such as HYPE’s unique ETF tailwind — can diverge from broad market sentiment even amid widespread liquidations.
