Storage names rally on Hyperliquid, but on-chain positioning keeps shrinking

News Editor

2026-08-25 07:12:30

TradingBeats, formerly Hyperinsight, said Aug. 25 that storage-linked names on Hyperliquid have risen sharply since a concentrated rebound began on July 30, with SKHX up about 29.9%, SNDK up 52.6%, and MU up 28.5%. Yet open interest across the three contracts moved the other way. Their combined OI value fell from roughly $999 million to $677 million, a drop of about $322 million, or 32.2%. The pullback looks larger when measured by contract size rather than dollar value. SKHX saw OI fall 28.7% while contract holdings dropped 45.1%. SNDK posted a 19.5% decline in OI and a 47.2% drop in holdings. MU recorded a 49.1% fall in OI and a 60.4% decline in holdings. TradingBeats said the gains over the past month were not matched by sustained expansion in open positions, and that rising prices during the same period make dollar-denominated OI understate the contraction in actual contract exposure. Using an Aug. 18 afternoon snapshot as a comparison point, combined OI across the three names fell another $192 million over the past seven days, down 22.1%. Margin data for million-dollar whale accounts also showed lower effective leverage on both the long and short side across SKHX, SNDK, and MU.

Storage-linked contracts on Hyperliquid have rallied since July 30, but on-chain positioning has continued to weaken, according to TradingBeats, formerly Hyperinsight, in data cited by BlockBeats on Aug. 25.

Since the latest concentrated rebound began, SKHX has gained about 29.9%, SNDK 52.6%, and MU 28.5% on Hyperliquid. Over the same period, the combined value of open interest across the three fell from roughly $999 million to $677 million, a decline of about $322 million, or 32.2%.

Contract holdings fell faster than dollar-based open interest

By individual name, SKHX open interest dropped from about $540 million to $385 million, down 28.7%, while contract holdings fell 45.1%. SNDK open interest declined from roughly $196 million to $157 million, down 19.5%, and contract holdings dropped 47.2%. MU open interest fell from about $263 million to $134 million, down 49.1%, while holdings fell 60.4%.

TradingBeats said the rise in the three storage names over nearly the past month was not accompanied by sustained expansion in open positions. Because prices moved higher over the same stretch, looking only at dollar-denominated OI would understate the decline in the number of contracts held. Based on the on-chain data, the move is closer to a deleveraging rebound.

The deleveraging trend continued over the past seven days

Using an Aug. 18 afternoon snapshot for comparison, combined OI across the three names fell from about $869 million to $677 million over the past seven days, a drop of about $192 million, or 22.1%.

Within that period, SKHX OI fell 21.9% and contract holdings fell 24.1%. SNDK posted a 30.3% decline in OI and a 21.0% drop in holdings. MU saw OI fall 10.4% and contract holdings fall 4.2%.

Million-dollar whale accounts also cut leverage

A comparison of total margin posted by million-dollar whale accounts showed lower leverage over the same seven-day window. Since Aug. 18, effective leverage on SKHX longs fell from about 4.5x to 3.6x, while shorts dropped from 5.5x to 2.9x. For SNDK, long leverage declined from 5.8x to 3.4x and short leverage from 6.7x to 5.9x. For MU, long leverage fell from 6.8x to 4.8x, and short leverage from 7.7x to 4.7x.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.

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