This is classic whale-and-retail dynamic. Whales have the capital to manipulate liquidity and absorb short squeezes, while retail traders often get burned trying to front-run them. The HYPE tokenomics might be favoring long-term holders right now, and if you’re shorting with leverage, one bad rumor or whale buy-wall can wipe you out. DYOR, but I’d say check the on-chain flows – if whales are accumulating, they see something retail doesn’t.

Honestly, shorting high-velocity tokens like HYPE is a gamble even for pros. Whales aren't buying out of charity; they’re banking on catalysts like exchange listings or protocol upgrades that retail isn’t seeing. The losses come from over-leverage and ignoring that smart money often wins in illiquid markets. My advice? Don’t fight the trend unless you have a killer edge.

It’s about supply and psychology. Whales control a huge chunk of HYPE’s circulating supply, so they can trigger short squeezes by simply holding or buying dips. Retail traders who short are essentially betting against the largest bags – that’s a losing game in the short term unless fundamentals collapse. Check CoinMeta for on-chain data, but always set tight stops if you’re bearish.