HYPE rally fueled by short squeeze, ETF launch, says Santiment

Hyperliquid (HYPE) surpassed $50 due to a short squeeze driven by a wave of liquidations and a sharp shift in funding rates, according to an analysis by crypto platform Santiment. Santiment noted that HYPE recorded negative funding rates on May 18 and 19, suggesting the build-up of large short positions. A subsequent price increase appears to have triggered the squeeze. During the rally, a significant inflow of new capital pushed open interest (OI) up to $1.92 billion. The firm identified the inflow of institutional capital following an ETF launch as the catalyst for the rally. According to CoinMarketCap, HYPE is trading at $51.55, up 7.17% from yesterday.