Highlights
- Trader Loracle is short $16.3 million of PONS on Hyperliquid, representing 17.5% of the token's total open interest on the exchange.
- Arkham data shows the position, opened nine days ago at $0.44, was underwater by more than $8 million when PONS hit its $0.9710 all-time high on September 5.
- Loracle is now up $2.18 million on the trade after PONS pulled back from its record.
- An analyst publicly called for coordinated buying to force a squeeze, claiming eight-figure commitments from other traders.
On-chain analytics platform Arkham reports that trader Loracle is currently short $16.3 million of PONS on Hyperliquid, a position equal to 17.5% of all open interest in the token on the exchange. Loracle opened the short nine days ago at an entry price of $0.44 and continued adding to it as PONS rallied, including through the token's all-time high of $0.9710 on September 5 — a stretch during which the position was underwater by more than $8 million. PONS has since pulled back from that peak, and Loracle is now sitting on a $2.18 million unrealized gain, according to Arkham's tracking of the wallet.
The swing illustrates just how volatile PONS has been since its debut as the flagship token of Robinhood Chain's launchpad. The token climbed from roughly $0.49 on September 1 to its $0.9710 record four days later, a rally of nearly 100% in under a week, before giving back a large share of those gains. PONS's fundamentals have been unusually strong for a launchpad token: the project reportedly generated more fee revenue in a single 24-hour period than Hyperliquid, Polymarket and Fomo combined, a level of activity that has made the token a magnet for both momentum buyers and skeptics betting the run is overextended.
Loracle's short is not an isolated bet — on-chain trackers show the position has been built and adjusted repeatedly over the past week and a half, growing to as much as 19% of Hyperliquid's total PONS open interest at points, with unrealized losses that reportedly exceeded $11 million before the token's pullback flipped the trade into profit. The size and persistence of the position have made it one of the most closely watched short bets on Hyperliquid this month, with wallet trackers updating the running profit-and-loss figure multiple times a day as PONS whipsaws.
A Short Position That Became a Trading Catalyst
The position's visibility has turned it into something of a public spectacle. An analyst posting as @mlmabc called publicly for other traders to coordinate against Loracle's short, claiming on September 6 that "eight-figure-level commitments" had already been pledged to push PONS higher and force the position toward liquidation. Loracle's liquidation price sits at $1.83 — meaning PONS would need to roughly double from current levels to wipe out the trade — but the episode shows how a single large, transparent short on a fully on-chain perpetuals exchange can itself become a trading catalyst, as other market participants position for a squeeze rather than on their own read of PONS's fundamentals.
Related: Trader Who Made $27M on TRUMP Opens $6.49M Short Against Zcash's Rally
It echoes a pattern that has played out repeatedly on Hyperliquid, where a separate mystery whale recently overtook PONS's previously known top holder, and where large, trackable positions routinely draw crowds looking to trade against — or alongside — them. Other Hyperliquid whales have shown similar willingness to hold outsized directional bets through heavy volatility rather than take profit early, a pattern reinforced by growing institutional interest in the platform itself, which has deepened liquidity and, with it, the size of bets that can be built and watched in near real time.
What Comes Next
The next move in PONS will decide whether Loracle's short becomes a cautionary tale or a validated contrarian call. A fresh push toward the token's $0.9710 high would test both the position's $1.83 liquidation price and the resolve of the traders who have pledged to fund a squeeze, while a deeper pullback toward the low-$0.40s would put Loracle's cost basis further in the money and could invite the trader to add size again, as the wallet has done twice already since opening the position. Either way, expect on-chain trackers to keep the position's running profit-and-loss front and center as long as PONS keeps trading with this much volatility.
FAQ
Who is the trader "Loracle" and what position are they holding?
Loracle is a Hyperliquid trader tracked by on-chain analytics platform Arkham who holds a $16.3 million short position on PONS, equal to 17.5% of the token's open interest on the exchange.
Why did Loracle's short lose more than $8 million?
The position was opened at $0.44 and added to as PONS rallied toward its all-time high of $0.9710 on September 5, pushing the trade deep underwater before the token pulled back.
What is PONS and why has it been so volatile?
PONS is the flagship token of Robinhood Chain's token launchpad, which has generated fee revenue exceeding Hyperliquid, Polymarket and Fomo combined in a single day, fueling sharp momentum-driven price swings.
What would liquidate Loracle's short?
Arkham data puts the position's liquidation price at $1.83, meaning PONS would need to roughly double from current levels to force the short to close.
