Crypto trader Crypto Patel delivered a stunning 38% profit on his short position in the HYPE token, highlighting the risks associated with overhyped tokens in the decentralized finance (DeFi) ecosystem. Patel’s precision call came after a steep rally and subsequent bearish correction. He exploited the token’s weakness following a $500 million unlock scheduled for November, setting up a potential 40% further decline to levels of $23-$19. This showcases the impact of market sentiment and technical analysis on HYPE’s performance. His successful short position serves as a cautionary tale for Hyperliquid, a leading DEX in the DeFi space, which is facing challenges from competitors like dYdX and GMX, prompting a potential correction to its TVL (Total Value Locked). The situation presents both an opportunity for traders seeking profits and a test of the resilience of Hyperliquid’s ecosystem.